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Wesco Aircraft (WAIR) to Post Q3 Earnings: What's in Store?

Zacks Equity Research

Wesco Aircraft Holdings, Inc. WAIR is expected to soon report its third-quarter fiscal 2019 financial results. In the last reported quarter, the company delivered a positive earnings surprise of 9.52%.

However, in the trailing four quarters, Wesco Aircraft came up with average negative surprise of 1.19%.

Let's take a closer look at the factors influencing the company’s upcoming quarterly results.

Factors Under Consideration

Wesco Aircraft's Americas business has a history of delivering strong performance. It contributed 81% to net sales in the last reported quarter. Notably, in recent times, this unit has been experiencing improved performance across its major product categories, particularly chemical and ad-hoc sales. We expect the trend to have continued in the third quarter, which, in turn, is likely to positively impact quarterly sales.

The Zacks Consensus Estimate for the company’s fiscal 2019 third-quarter sales is pegged at $438 million, indicating 6.7% growth from the year-ago quarter’s reported figure.

During the fiscal second-quarter earnings call, Wesco Aircraft mentioned its ongoing cost-reduction efforts associated with the execution of Wesco 2020 initiatives. Hence, we may expect the soon-to-be-reported results to reflect lower costs, thereby driving the company’s earnings.

Moreover, Wesco Aircraft has been witnessing a decline in its net interest expenses over the last few quarters. We expect similar trends to continue in the to-be-reported quarter, which in turn may favorably impact the company’s bottom line.

In line with these factors, the Zacks Consensus Estimate for Wesco Aircraft’s fiscal 2019 third-quarter earnings is pegged at 23 cents, suggesting a rise of 15% from the year-ago quarter’s reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively show that Wesco Aircraft is likely to beat earnings estimates this reporting season. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Wesco Aircraft has an Earnings ESP of -1.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Wesco Aircraft Holdings, Inc. Price and EPS Surprise

Wesco Aircraft Holdings, Inc. Price and EPS Surprise

Wesco Aircraft Holdings, Inc. price-eps-surprise | Wesco Aircraft Holdings, Inc. Quote

A Stock to Consider

Here is a defense stock you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter:

Ducommun Incorporated DCO is scheduled to report second-quarter 2019 results on Aug 5. The company has an Earnings ESP of +12.05% and a Zacks Rank #3.

Recent Defense Releases

Textron Inc. TXT reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%. The bottom line also increased 6.9% from 87 cents in the year-ago quarter.

Lockheed Martin Corp. LMT reported second-quarter 2019 earnings of $5 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 5.5%. The bottom line also improved 23.5% from $4.05 in the year-ago quarter.

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Wesco Aircraft Holdings, Inc. (WAIR) : Free Stock Analysis Report
 
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