Ahead Of B/E Aerospace's Q4 Results

(RTTNews) - B/E Aerospace Inc. (BEAV), the world's leading manufacturer of aircraft cabin interior products, said its high quality backlog continues to grow, providing a clear vision to accelerate revenue growth beginning in 2017. The company remains laser-focused on executing these orders and have more of the revenues drop to the bottom line over a smaller share count, thereby accelerating earnings and free cash flow growth on a per share basis.

During the third quarter, the company began implementation of its previously announced cost reduction program, which includes consolidation of six facilities and reduction in force of about 450 employees. The after-tax charge for the program was $30.5 million or $0.29 per share. While the charge for the program was recognized during the quarter, facilities consolidation and reductions in force will continue through much of 2016.

The company expects some of the benefit of the program to be realized during 2016 and the full benefit to be realized in 2017.

For fiscal 2015, the company maintained its revenue expectation of about $2.8 billion, operating margin in excess of 18%, and net earnings of about $3.03 per share.

B/E Aerospace continues to project 2016 revenues to be 1% - 2% higher than 2015 revenues. Fiscal 2016 net earnings are expected to increase about 5% to about $3.15 - $3.20 per share. The company also continues to expect to hike dividend by about 10% in 2016.

For 2017, B/E Aerospace expects to return to a strong revenue growth rate with revenues expected to increase about 7.5% as compared with 2016. The company expects earnings per share growth in the low to mid-teens as compared with 2016.

The company is likely to release its fourth-quarter financial results before the bell on Tuesday, February 2, 2016. Analysts surveyed by Thomson Reuters estimate earnings of $0.81 per share on revenue of $709.11 million. Analysts' estimate typically exclude certain special items.

In the previous quarter...

B/E Aerospace reported third-quarter net earnings from continuing operations of $45.8 million or $0.44 per share compared to $49.2 million or $0.47 per share, last year. Adjusted earnings from continuing operations was $76.7 million or $0.73 per share, for the quarter. Analysts expected earnings of $0.73 per share.

Third quarter 2015 revenues rose 4.0% to $679.8 million from last year. On a constant currency basis revenues increased about 4.9%.