Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Aeroflex’s Shares Flexed Their Muscles Today

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Aeroflex Holding Corp (NYSE: ARX  ) are up 16% today, after beating expectations on both top and bottom lines. The company's forward guidance, while not ahead of estimates, was also good enough to attract serious investor attention today.

So what: Aeroflex's quarterly results were $141.2 million in revenue and adjusted EPS of $0.04, which both beat the Street's consensus of $137.2 million in revenue and $0.01 in EPS. The company offered forward revenue guidance for its upcoming fiscal second quarter in the $147 million to $155 million range, with the midpoint right about at the $151 million consensus. EPS guidance, in the $0.06 to $0.09 range, also covered consensus estimates of $0.08.

Now what: Aeroflex's positive quarter and solid guidance prompted Needham & Company to upgrade the stock from a hold to a buy. The company's upcoming guidance hints at a turnaround in declining revenue, and Aeroflex's free cash flow had already been nudging higher, even before today's good news. On a price-to-free-cash-flow level (using the most recently available trailing 12-month result), Aeroflex is quite cheap, with a P/FCF ratio in single digits. Needham & Company might be onto something. Aeroflex looks like it has earned a closer look.

Want more news and updates? Add Aeroflex to your Watchlist now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2103210, ~/Articles/ArticleHandler.aspx, 10/21/2016 7:50:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ARX.DL $0.00 Down +0.00 +0.00%
Aeroflex Holding CAPS Rating: *