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Dec 28, 2019
Moog Q1 2020 Earnings Report
Moog reported first quarter results with sales up 11% and diluted earnings per share up 18% year over year.
Key Takeaways
Moog Inc. reported strong first quarter results with sales of $755 million, an 11% increase year-over-year. Diluted earnings per share rose by 18% to $1.44. The company updated its fiscal year 2020 projections to reflect a recent acquisition and financing activities, forecasting sales of $3.0 billion and diluted earnings per share of $5.50, plus or minus $0.20.
Sales increased by 11% to $755 million compared to the previous year.
Operating margins improved to 12.0% from 11.7% year over year.
Diluted earnings per share rose to $1.44, an 18% increase from the prior year.
Cash flow from operating activities was $42 million.
Moog
Moog
Moog Revenue by Segment
Revenue by Segment
Space & Defense Revenue
CapyFin.comMilitary Aircraft Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
Moog updated its fiscal 2020 projections, increasing sales outlook by $35 million to account for the GAT acquisition but decreasing EPS guidance by $0.05 due to the debt offering and share buyback activity.
Positive Outlook
- Forecast sales of $3.0 billion.
- Forecast full year operating margins of 11.3%.
- Forecast effective tax rate of 25.3%.
- Forecast diluted earnings per share of $5.50, plus or minus $0.20.
- Forecast cash flow from operations of $272 million.
Challenges Ahead
- The markets served are cyclical and sensitive to economic conditions.
- Operates in highly competitive markets.
- Dependence on government contracts that may be terminated or not fully funded.
- Fixed-price contracts could lead to losses from cost overruns.
- Potential issues with products and manufacturing processes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income