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Apr 01, 2023
Moog Q2 2023 Earnings Report
Moog's performance was marked by record sales and reaffirmed adjusted earnings per share guidance for the full year.
Key Takeaways
Moog Inc. reported a 9% increase in net sales to $837 million in Q2 2023. Diluted earnings per share were $1.34, with adjusted diluted earnings per share at $1.42. The company is reiterating its full year adjusted EPS guidance.
Net sales increased by 9% compared to the second quarter from a year ago, with increases across all three reporting segments, reaching $837 million.
Adjusted operating margin of 10.4% was relatively unchanged from a year ago, as stronger operational performance was offset by program charges and an unfavorable sales mix.
Adjusted diluted earnings per share decreased 5%, as $7 million of higher interest expense was partially offset by increased operating profit.
Adjusted free cash flow use in the second quarter of $101 million was driven by working capital consumption and elevated capital expenditures.
Revenue by Segment
Forward Guidance
Moog is increasing its sales guidance slightly to $3.2 billion and reiterating its fiscal year 2023 guidance for adjusted operating margin and adjusted earnings per share. Free cash flow guidance is now zero.
Positive Outlook
- Sales guidance increased to $3.2 billion.
- Adjusted operating margin guidance reiterated at 11.0%.
- Adjusted diluted earnings per share guidance reiterated at $5.70.
- Overall, the first half of the year was good.
- Outlook for the rest of the year looks strong.
Challenges Ahead
- Free cash flow guidance reduced to zero.
- Increase in working capital requirements largely due to the second quarter pressures.
- Investments needed to support the business.
- Operating margin decreased from 11.2% to 11.1%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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