Defense technology firm Moog's Q3 sales beat estimates

Overview

• Moog fiscal Q3 net sales rise 7% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 rises 24%, beating consensus estimates

• Co acquired COTSWORKS after quarter-end, strengthening Space and Defense portfolio

Outlook

• Moog raises FY 2025 sales guidance to $3.8 bln from $3.7 bln

• Company updates FY 2025 adjusted operating margin guidance to 12.8%

• Moog moderates free cash flow guidance to 30-50% due to working capital needs

• Company cites tariff pressures impacting FY 2025 operating margin

Result Drivers

• SALES GROWTH - Driven by strong performance in Commercial Aircraft, Space and Defense, and Military Aircraft, while Industrial sales declined due to divestitures

• OPERATING MARGIN - Relatively unchanged as charges for program termination and simplification initiatives offset stronger operational performance

• ADJUSTED OPERATING MARGIN - Increased due to sale of intellectual property and favorable sales mix, partially offset by tariff pressure

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Moog Inc is $210.00, about 11.5% above its July 24 closing price of $185.85

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw4vk00Da