Hweb, just a couple of points to consider regarding TATTF's report.
1. Sales were up over 100%, but adjusted for the acquisition were actually flat y/y.
"The increase in revenues and profit is mainly due to the acquisition of Piedmont Aviation Component Services, LLC which contributed more than $8,000,000 to sales and due to the efficiency measures applied by the company since its acquisition.
Had the Piedmont sales been included in last year's numbers, sales growth would have been <1%. (16407 v 16389)
2. Pretax margins are dropping, falling from 14.4% last year to 12.5% this year. Could be the new revenue mix from Piedmont or inefficiencies that haven't gotten worked out yet....still a bit of a red flag.
3. They are in a fairly "hot" sector (airplane equip suppliers) which has shown strong growth recently. Its still a fairly cyclical group will probably not warrant a high PE from the market, esp if these earnings are peaking right now....
4. The new orders are certainly nice to see, but they appear to have a fairly lengthy pattern:
"In accordance with manufacturing projections for the aircraft, the estimated sales potential for TAT Technologies in this program over the next 15 years is in excess of 17 million USD.
That's only 1.1MM avg per year, and will probably be lumpy and hard to estimate from a timing perspective.
AI
