Barnes Group Q4 Profit Tops View, But Sales Miss; Guides 2015 EPS In Line

(RTTNews) - Aerospace and industrial manufacturer Barnes Group, Inc. (B) reported Friday a profit for the fourth quarter that grew 18 percent from last year, reflecting higher margins and sales growth across segments.

Adjusted earnings per share from continuing operations topped analysts' expectations by a penny, while quarterly sales missed their estimates. The company also provided earnings forecast for the full-year 2014, in line with Street view.

The Bristol, Connecticut-based company reported net income of $31.51 million or $0.57 per share for the fourth quarter, higher than $26.82 million or $0.48 per share in the prior-year quarter.

Income from continuing operations for the quarter declined to $33.26 million or $0.60 per share from $26.31 million or $0.47 per share in the year-ago quarter.

Excluding items, adjusted income from continuing operations for the quarter was $0.62 per share, compared to last year's $0.57 per share. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the quarter. Analysts estimates typically exclude special items.

Net sales for the quarter grew 6.5 percent to $310.17 million from $291.14 million in the same quarter last year, but missed five Wall Street analysts' consensus estimate of $313.86 million.

Sales growth was driven by organic sales growth of 6 percent and one additional months sales contribution from the acquired Männer business compared to last year. Unfavorable foreign exchange reduced sales by 3 percent.

Industrial net sales for the quarter grew 7.9 percent to $198 million, and aerospace net sales increased 4.3 percent to $112 million in the prior-year quarter.

Operating margin for the quarter expanded 400 basis points to 15.7 percent from last year's 11.7 percent.

"Barnes Group's continued execution of its profitable growth strategy has delivered another year of excellent financial performance with an impressive 250 basis point gain in adjusted operating margin and a 28% increase in adjusted earnings from continued operations," President and CEO Patrick Dempsey said in a statement.

Looking ahead to fiscal 2015, the company expects adjusted earnings from continuing operations in a range of $2.42 to $2.57 per share, on projected revenue growth of 3 to 6 percent and 6 to 9 percent on an organic basis. Street is currently looking for full-year 2015 earnings of $2.49 per share on annual revenue growth of 5.5 percent to $1.34 billion.

"Our relentless focus on driving differentiated industrial technologies and innovative solutions to the customers and end markets we serve is fueling our growth engine and we look forward to carrying that momentum into 2015," Dempsey added.

B closed Thursday's regular trading session at $37.20, down $0.11 on a volume of 0.29 million shares.