B/E Aerospace Posts Sharp Rise in Q1 Profit; Beats Street; Raises Guidance

Aircraft cabin interior manufacturer B/E Aerospace reported a more-than-doubling of Q1 earnings on surging airline refurbishments stemming from booming demand in air travel. Q1 net profit came in at $32.1 million ($0.40/share) from $13.8 million ($0.18/share), ahead of Street forecasts of $0.32. Revenue rose 57% to $387.8 million, again beating analyst expectations of $323.3 million. The company has raised its full-year earnings guidance to $137 million from $117 million and its EPS forecast to $1.55 a share from $1.45-1.47. Analysts had been expecting $1.46. Results were helped by a 191% increase in the seating segment's operating margin and by healthy retrofit program deliveries. Burgeoning air traffic demand generated more orders from clients Boeing and Airbus, and many other airlines are upgrading their cabins. CEO Amin J. Khoury said orders for the company's spare parts and products are at "record levels."

Sources: Press release, Reuters, Bloomberg, MarketWatch
Commentary: BE Aerospace Should Continue To Reach New Heights • DoD's FY-08 Budget: The Largest in US History
Stocks/ETFs to watch: B/E Aerospace, Inc. (BEAV). Competitors: Anixter International Inc. (AXE). ETFs: iShares Russell 2000 Growth Index (IWO)

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