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Dec 31, 2022
Moog Q1 2023 Earnings Report
Moog's first quarter of 2023 showed sales growth and improving margins, with an increase in adjusted diluted earnings per share and reiterated full-year adjusted 2023 earnings guidance.
Key Takeaways
Moog Inc. reported a 5% increase in net sales to $760 million in Q1 2023, with diluted earnings per share of $1.44 and adjusted diluted earnings per share of $1.25. The company saw stronger operating margins driven by higher sales volumes in Industrial Systems and improved sales mix in Aircraft Controls and Industrial Systems.
Net sales increased by 5% to $760 million, reflecting higher sales across all three segments.
Adjusted operating margin increased to 10.4%, driven by higher sales volumes in Industrial Systems and improved sales mix in Aircraft Controls and Industrial Systems.
Adjusted diluted earnings per share increased by 14%, driven by stronger operating margin, partially offset by higher interest expense.
Consolidated twelve-month backlog increased by 8% year-over-year to $2.3 billion.
Moog
Moog
Moog Revenue by Segment
Revenue by Segment
Space & Defense Revenue
CapyFin.comMilitary Aircraft Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
Moog Inc. reiterates its fiscal year 2023 guidance for sales, adjusted operating margin, and adjusted earnings per share. The company lowered its fiscal year 2023 free cash flow guidance due to an assumption change related to the previously anticipated repeal of the R&D expense amortization law.
Positive Outlook
- Net sales are expected to be $3,175 million.
- Operating margin is expected to be 11.2%.
- Adjusted operating margin is expected to be 11.0%.
- Diluted earnings per share are expected to be $5.89.
- Adjusted diluted earnings per share are expected to be $5.70.
Challenges Ahead
- Free cash flow guidance lowered to $100 million due to an assumption change related to the previously anticipated repeal of the R&D expense amortization law.
- Earnings per share figures are forecasted to be within range of +/- $0.20.
- The markets are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause operating results to fluctuate.
- Dependence on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce sales and increase costs.
- A reduced supply, as well as inflated prices, across various raw materials and third-party provided components and sub-assemblies within the supply chain could have a material impact on the ability to manufacture and ship products, in addition to adversely impacting operating profit and balance sheet.
Revenue & Expenses
Visualization of income flow from segment revenue to net income