What happened
Industrial pump and flow control product manufacturer Circor International (CIR) easily topped quarterly expectations thanks to strong demand and the company's efforts to keep costs under control. Investors liked what they saw, sending Circor shares up as much as 22% on Monday morning.
So what
Earlier in the day, Circor reported third-quarter adjusted earnings of $0.69 per share, easily topping the $0.34-per-share analyst consensus estimate on revenue that at $195.36 million came in slightly ahead of expectations. Revenue was up 3% year over year, fueled by 18% growth in the company's aerospace and defense (A&D) segment.
Operating income was up 70% year over year. Circor reported an adjusted operating margin of 14%, up 550 basis points year over the year despite inflationary pressure, supply chain challenges, and energy costs.
"Both Industrial and A&D benefited from disciplined execution of our strategic priorities to drive revenues and operating income growth," CEO Tony Najjar said in a statement. "Our results underscore our emphasis on value pricing, our strong aftermarket position, and operational simplification/cost out actions."
Now what
Circor recorded $228 million worth of orders in the quarter, up 18% year over year. Seeing orders outpacing sales bodes well for growth in the quarters to come and helped fuel 14% growth in the backlog to $497 million in future business.
Circor isn't the flashiest business, but the company makes key components for a range of key aerospace, defense, healthcare, and industrial applications. With demand strong and the company doing a good job keeping costs under control, there is a lot for investors to be optimistic about from here.
