Moog Profit Down, Lowers FY Guidance; Shares Down 9%

(RTTNews) - Precision control products maker Moog Inc. (MOG-A), Thursday reported a decline in profit for the first quarter, as a 4 percent growth in revenues were offset by one-time charges. Earnings for the quarter fell short of analysts' estimates by a penny, but revenues trumped expectations.

Moving ahead, the company lowered its full year financial outlook, sending its shares down 9 percent on the New York Stock Exchange.

New York-based Moog's first-quarter profit dropped to $32.1 million or $0.70 per share from last year's $34.1 million or $0.75 per share.

Earnings for the quarter include a charge for costs related to redemption of high yield notes of $0.12 per share and a investment write down of $0.06 per share.

Excluding one-time charges, adjusted earnings improved to $0.88 per share from $0.75 per share last year. On average, seven analysts polled by Thomson Reuters expected earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude one-time items.

Moog's sales for the quarter grew 4 percent to $643.4 million from $620.8 million. Six analysts had a consensus revenue estimate of $640.66 million for the quarter.

Looking ahead forward to the full year 2014, the company now expect earnings of $3.65 per share on revenues of $2.63 billion. Analysts currently expect earnings of $4.06 per share on revenues of $2.68 billion for the period.

Earlier, the company had projected earnings of $3.90 - $4.10 per share and sales of $2.67 billion for 2014.

Chief Executive John Scannell said, "We're off to a slow start in fiscal '14. Our commercial aircraft business is strong, but our defense and industrial markets are weaker than plan. Despite the difficult market conditions, we continue to invest in programs which will deliver long term benefits."

MOG-A is currently trading at $62.10, down $6.62 or 9.63%.