Heroux-Devtek posts Q3 earning gain

Heroux-Devtek (TSE:HRX), an international manufacturer of aerospace products, on Friday reported stronger net income, swinging to a gain in its third quarter of fiscal 2016, compared with a loss a year earlier. In the quarter, the aerospace company reported a net gain of $7 million or $0.19 per share, compared with a loss of $1.9 million or $0.05 per share in the same quarter of fiscal 2015. Adjusted net income was $7 million, or $0.19 per diluted share, in the third quarter of fiscal 2016, up from $4.4 million, or $0.12 per diluted share, in the third quarter of fiscal 2015, beating estimates of $0.17 per share.
Revenue rose to $96.5 million, up from $88.2 in the same quarter of the prior year, but falling short of estimates of $98.2 million. The 9.3% increase reflects the strength of the commercial aerospace market, the company said, while year-over-year fluctuations in the value of the Canadian currency versus foreign currencies increased third-quarter sales by $11.7 million. “Commercial sales remained robust reflecting our greater reach in the large aircraft market and the production ramp-up of certain programs for which we designed landing gear systems, while certain delayed deliveries and lower requirements led to a reduction in defence sales,” said president and CEO Gilles Labbe. Looking ahead, Heroux-Devtek said conditions remain mostly favourable in the commercial aerospace market. As at December 31, 2015, Heroux-Devtek’s funded backlog stood at $442 million, versus $427 million three months earlier. Labbe said the company expects to conclude fiscal 2016 with sales growth of approximately 10%, including a solid increase in commercial sales and relatively stable defence sales. HRX shares closed at $11.99 on Thursday.
The stock is up 3.42% or $0.41 after the news, hitting $12.4 per share. About 3,300 shares traded hands. Heroux-Devtek Inc. (TSE:HRX) has risen 6.48% since July 8, 2015 and is uptrending. It has outperformed by 17.32% the S&P500.
Heroux-Devtek Inc. is a Canada firm which makes aerospace products. The company has a market cap of $447.78 million. The Firm designs, develops, makes, repairs and overhauls landing gear systems and components used in the aerospace market. It has 67.48 P/E ratio. It supplies the commercial and military sectors of the aerospace market with landing gear systems and components, as well as aftermarket services and products, including spare parts and repair and overhaul services.
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