Shares of Wesco Aircraft Holdings Inc. dropped more than 24 percent the day after the company reported adjusted earnings and revenue that missed Wall Street estimates in the fiscal third quarter.
The Valencia aerospace parts supplier reported adjusted net income of $10 million (10 cents a share) on revenue of $364 million in the quarter ended June 30. That compares to adjusted net income of $28.5 million (29 cents) in the same period a year earlier.
Analysts on average expected earnings of 21 cents on revenue of $379 million, according to Thomson Financial Network.
Chief Executive Todd Renehan admitted that the results were poor and below the company’s capabilities. The impact of initiatives to address inventory management, customer service, on-time delivery and efficiency issues were not reflected, he added.
“Despite these internal issues, our customers continue to recognize Wesco’s value proposition, renewing long-term contracts and awarding new business,” Renehan said in a prepared statement.
Results were announced Tuesday. Shares closed Wednesday down $2.50, or more than 24 percent, to $7.85 on the New York Stock Exchange.