Yahoo Finance Curtiss-Wright Corp (CW) Outperforms Q1 Estimates and Raises 2024 Guidance
Revenue: Reported $713 million, a 13% increase year-over-year, surpassing the estimated $663.93 million.
Earnings Per Share (EPS): Diluted EPS reached $1.99, significantly exceeding the estimate of $1.74.
Net Income: Operating income reported at $100 million, up 27% from the previous year, demonstrating robust profitability growth.
New Orders: Achieved $901 million, marking a 26% increase, driven by strong demand in Aerospace & Defense markets.
Full-Year Guidance: Raised EPS outlook to a range of $10.10 to $10.40, reflecting an 8% to 11% increase, and sales growth forecast adjusted to 5% to 7%.
Operating Margin: Improved to 14.0%, an increase of 110 basis points, indicating enhanced operational efficiency.
Free Cash Flow: Adjusted free cash flow reported at ($58) million, showing an deterioration of $35 million year-over-year.
On May 1, 2024, Curtiss-Wright Corp (NYSE:CW) released its 8-K filing, detailing a robust financial performance for the first quarter ended March 31, 2024. The company not only surpassed quarterly expectations but also raised its full-year guidance for 2024, reflecting confidence in its operational strategies and market demand.
Company Overview
Curtiss-Wright Corporation is a global provider of highly engineered products and services for the Aerospace & Defense markets, along with critical technologies for Commercial Power, Process, and Industrial markets. The company operates through three segments: Naval & Power, Aerospace & Industrial, and Defense Electronics, with Naval & Power being the largest revenue contributor.
Q1 2024 Financial Highlights
The company reported first-quarter sales of $713 million, a 13% increase from the prior year, and significantly higher than the estimated $663.93 million. Operating income surged 27% to $100 million, with an operating margin of 14.0%. The diluted earnings per share (EPS) stood at $1.99, outpacing the analyst estimate of $1.74 by a substantial margin.
New orders during the quarter amounted to $901 million, marking a 26% increase, driven by strong demand in the Aerospace & Defense sectors. This robust influx of orders pushed the book-to-bill ratio beyond 1.25x, indicating a healthy pipeline for future revenues.
Segment Performance and Adjustments
The Defense Electronics segment showcased exceptional growth with a 31% increase in sales and a 106% jump in operating income, benefiting from higher demand in aerospace defense markets. However, the Naval & Power segment experienced a slight dip in profitability due to a naval contract adjustment, impacting both quarterly and full-year outlooks for this segment.
Updated 2024 Financial Guidance
In light of the strong first-quarter results, Curtiss-Wright has revised its 2024 full-year guidance upwards. Sales growth expectations have been adjusted from 4-6% to 5-7%, and EPS is now anticipated to be between $10.10 and $10.40, reflecting an 8-11% increase from previous projections.
Strategic and Financial Outlook
Lynn M. Bamford, Chair and CEO, expressed satisfaction with the quarter's results and optimism for the future.
Our results included a very strong performance in the Defense Electronics segment, which was partially offset by reduced profitability in the Naval & Power segment, principally related to a naval contract adjustment that impacted both the first quarter and full-year outlook for this segment,"
Bamford stated. The company remains committed to its 'Pivot to Growth' strategy, focusing on operational efficiency and market expansion.
Investor and Market Reactions
The positive earnings report and upgraded guidance are expected to bolster investor confidence in Curtiss-Wright's growth trajectory and operational resilience. The company's strategic alignments and robust order book position it favorably within the competitive Aerospace & Defense landscape.
For more detailed financial figures and future projections, stakeholders are encouraged to view the full earnings report and join the upcoming investor day on May 21, where long-term financial targets will be discussed.
Curtiss-Wright's commitment to innovation and market expansion continues to drive its success, making it a noteworthy contender in the Aerospace & Defense sectors.
For further information, including detailed financial tables and segment analysis, please refer to the company's official website and the latest SEC filings.
Explore the complete 8-K earnings release (here) from Curtiss-Wright Corp for further details.
This article first appeared on GuruFocus.
