CIRCOR Stock Slips On Missing Q3 Estimates, FY21 Outlook Cut

CIRCOR International, Inc. CIR reported third-quarter FY21 revenue growth of 2% year-over-year to $190.78 million and up 1% on an organic basis, missing the consensus of $203.19 million. Orders grew 16% reported and 15% organically.
Aerospace & Defense revenue $61.5 million (-1% Y/Y) with orders $54 million (-9% Y/Y) and Industrial revenue $129.3 million (+4% Y/Y) with orders $139.7 million (+30% Y/Y).
Adjusted EPS improved to $0.50 from $0.36 in 3Q20, missing the consensus of $0.56.
The gross margin expanded by 184 bps to 31.8%. The operating income increased to $6.68 million (+51% Y/Y), and the margin expanded by 110 bps to 3.5%. Adjusted operating margin expanded by 80 bps to 10.1%.
Aerospace & Defense Segment operating income $14.9 million (+1% Y/Y), with the corresponding margin expanding 50 bps to 24.2%.
Industrial Segment operating income $11.3 million (+15% Y/Y), and margin expanded by 80 bps to 8.7%.
CIRCOR generated cash from operating activities year-to-date of $4.7 million, versus cash used of $46.4 million a year ago.
At the end of the quarter, the company's backlog was $434.6 million (+4.6% Y/Y).
"While global supply chain constraints adversely impacted our 3Q results and 4Q outlook, we remain encouraged by robust demand for our Industrial products and strong positions on growing Aerospace & Defense programs," said President and CEO Scott Buckhout.
Q4 Outlook: CIRCOR expects organic revenue to increase by 1% - 3%, Adjusted EPS of $0.60 - $0.65.
FY21 Outlook: The company now expects organic revenue to decrease by (2)% to (0)% (previously 2% - 4%); reported revenue growth to be (1) - 1%.
It reduced its Adjusted EPS outlook to $1.69 - $1.74 (consensus $2.12) from the prior view of $2.10 - $2.30, citing a lower revenue outlook and the impact of continued inflationary pressure.
Price Action: CIR shares are trading lower by 7.93% at $32.69 on the last check Friday.

Market News and Data brought to you by Benzinga APIs

CIRCOR Stock Slips On Missing Q3 Estimates, FY21 Outlook Cut

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga