BWX Technologies Inc (NYSE: BWXT) stock rose over 2.4% on 5th November, 2019 (Source: Google finance) after the company posted better than expected results for the third quarter of FY 19. The Company generated net cash from operating activities of $43.9 million in the third quarter of 2019 against $25.8 million of net cash utilized in operating activities in the prior-year period. At the end of the third quarter 2019, the Company’s cash and short-term investments position, net of restricted cash, was of $17.3 million. At the end of September 2019, the Company had gross debt of $872.5 million and $64 million in letters of credit issued under the Company’s revolving credit facility.
BWX Technologies in the third quarter of FY 19 has reported the adjusted earnings per share of 79 cents, beating the analysts’ estimates for the adjusted earnings per share of 65 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 19 percent to $506 million in the third quarter of FY 19, beating the analysts’ estimates for revenue by 4.60%.
Additionally, BWXT had returned $16.2 million in dividends to shareholders during the third quarter 2019, which brought the total to $69.2 million of cash returned year-to-date. This also includes $20 million in share repurchases and $49.2 million in dividends. As of September 30, 2019, the total remaining share repurchase authorization remained at $165.3 million.
The company has also declared a quarterly cash dividend of $0.17 per common share, which will be payable on December 13, 2019, to shareholders of record on November 20, 2019.
For FY 19, the company increased the non-GAAP EPS forecast to be now approximately $2.55 (excludes pension and post-retirement benefits mark-to-market). The company has increased other income mainly due to pension and other post-employment benefits to about $24 million. The company has decreased the non-GAAP effective tax rate to be about 23% and decreased capital expenditures to ~$210 million. Overall, the company expects a non-GAAP EPS compound annual growth rate (CAGR) to be in the low-double digits over a three-to-five year period from 2017.
In addition, for FY 19, the company expects NOG revenue growth to be of ~6% and NPG revenue to be ~flat compared to 2018. the company expects NOG operating margin to be in the “high teens” with upside potential from CAS pension reimbursement, NPG operating margin to be of ~14% and NSG operating income to be of ~$20 million