Moog Inc. (MOGA) has reported 16.47 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $30.56 million, or $0.84 a share in the quarter, compared with $26.24 million, or $0.71 a share for the same period last year.

Revenue during the quarter grew 3.73 percent to $589.67 million from $568.46 million in the previous year period. Gross margin for the quarter expanded 85 basis points over the previous year period to 29.25 percent. Total expenses were 89.69 percent of quarterly revenues, down from 92.26 percent for the same period last year. This has led to an improvement of 257 basis points in operating margin to 10.31 percent.

"Earnings per share before specials of $0.91 were above our guidance from 90 days ago," said John Scannell, chairman and chief executive officer. "It was a good start to the year and it puts us on track for our full year guidance. Most of our businesses have stabilized since this time last year and we are seeing positive results from restructuring and our portfolio reviews of the past few years." 

For fiscal year 2017, Moog expects revenue to be $2,420 million. The company projects operating income to grow at 10 percent. The company projects diluted earnings per share to be $3.50.


Operating cash flow turns positive
Moog Inc. has generated cash of $50.58 million from operating activities during the quarter as against cash outgo of $0.46 million in the last year period.

The company has spent $15.82 million cash to meet investing activities during the quarter as against cash outgo of $22.30 million in the last year period.

The company has spent $12.97 million cash to carry out financing activities during the quarter as against cash inflow of $44.22 million in the last year period.

Cash and cash equivalents stood at $331.66 million as on Dec. 31, 2016, up 2.58 percent or $8.35 million from $323.32 million on Jan. 02, 2016.
 

Working capital declines
Moog Inc. has witnessed a decline in the working capital over the last year. It stood at $947.30 million as at Dec. 31, 2016, down 12.03 percent or $129.51 million from $1,076.82 million on Jan. 02, 2016. Current ratio was at 2.67 as on Dec. 31, 2016, down from 2.90 on Jan. 02, 2016.

Cash conversion cycle (CCC) has decreased to 123 days for the quarter from 187 days for the last year period. Days sales outstanding went down to 106 days for the quarter compared with 111 days for the same period last year.

Days inventory outstanding has decreased to 51 days for the quarter compared with 111 days for the previous year period. At the same time, days payable outstanding was almost stable at 34 days for the quarter, when compared with the previous year period.