Industry Week in Review – September 7, 2012
The Democratic Party revealed its 2012 Platform during the Democratic National Convention held in Charlotte, NC. This year’s platform includes language suggesting that it supports additional defense spending reductions. The platform calls for “tough budgetary decisions” and has singled out certain programs such as nuclear weapons, which it characterizes as outdated remnants of the Cold War era. It does not contain any language about avoiding sequestration, noting that the Budget Control Act of 2011 was passed with bipartisan support and that its mandated cuts were borne of a “strategy-driven process” that included both Congress and the Administration.
The Republican platform announced during the prior week’s convention, on the other hand, is opposed to the automatic cuts under sequestration, characterizing such cuts as being “a disaster for national security.”
Big Movers
Smith & Wesson Holding Corporation (Up 25.2%) Shares were up for the week following the company’s announcement that 2Q13 net sales will be between $130 million and $135 million, beating analyst estimates of $119 million. The company also raised its guidance for FY13 sales as being between $530 million and $540 million, beating analyst estimates of $498 million.
AAR Corp. (Up 14.5%) Shares were up for the week following the company’s announcement that it expects 1Q13 diluted EPS to be between $0.42 – $0.45 on sales of $540 million – $550 million, beating analyst estimates of $0.33 in EPS on sales of $526 million.
Relevant Transactions
Graphic Plc acquired Printca Denmark A/S, a developer of printed circuit boards for space, aerospace, and defense industries, for an undisclosed amount. The acquisition expands Graphic’s high-specialization products enabling them to support a wider range of customers.
