What happened
Industrial pump and flow control product manufacturer Circor International (CIR +0.00%) 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."
NYSE: CIR
Key Data Points
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.
