Wesco Aircraft Holdings’ third-quarter net profits beat analysts’ expectations by 1 cent per share, coming in at 22.3 million (23 cents), versus just $14 million (15 cents) a year earlier.
The Santa Clarita-based aircraft parts supplier’s revenues were in line with the consensus estimate at $189.3 million, an increase of 5.2 from the prior-year quarter’s $180.0 million.
Company CEO Randy Snyder said Wesco has “continued to increase the scope of our contracts with our valued customers” and has “started to see the positive impact of our efforts to work through excess customer-owned inventory on some of our newer contracts.”
But Wesco reaffirmed its earlier guidance of 4-7 percent growth for the coming year. Last quarter, it had revised its forecast downward from an estimated 7-10 percent growth rate for fiscal 2013 when it found that many of its customers had more inventory on hand, meaning Wesco wouldn’t be selling them as many parts quite as fast as previously thought.
Share prices fell about 3 percent following Tuesday’s earnings report.
About Wesco Aircraft
With global headquarters in the Valencia Industrial Center, Wesco Aircraft is one of the world’s largest distributors and providers of comprehensive supply chain management services to the global aerospace industry. The company’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management. The company believes it offers the world’s broadest inventory of aerospace parts, comprised of approximately 500,000 different stock keeping units, including hardware, bearings, tools, electronic components and machined parts. Wesco Aircraft has more than 1,200 employees across 44 locations in 12 countries.