(GR) - Top Stock Pick in Defense and Homeland Security - Goodrich Corporation

Goodrich Corporation (GR) beat the Street's earnings estimate in 10 out of the past 12 quarters. Earnings per share are projected to grow 14.0% over the next 3-5 years. The company recently raised its 2006 revenue guidance after releasing solid results for the second quarter. This Zacks #1 Rank stock is currently yielding 2.0% and its return on equity exceeds that of the industry average-16% compared to 14%. Full Analysis Goodrich Corporation is a global supplier of systems and services to the aerospace, defense and homeland security markets. The company has three business segments: airframe systems, engine systems and electronic systems. During the past 12 quarters, GR exceeded analysts' earnings expectations on 10 occasions with an average margin of 19.5%. Earnings per share are projected to grow 14.0% over the next 3-5 years. On Jul 27, the company surprised to the upside by 4.9% when it posted second-quarter earnings per share of 64 cents. In the second quarter of 2005, GR reported profits of 51 cents per share. Revenues jumped 9.6% to $1.48 billion. The company cited increased demand for commercial airplane original equipment and aftermarket products as fueling its revenue growth. In mid June, Airbus announced that deliveries of its new A380 jetliner would be delayed. GR supplies a wide range of parts for the A380, including landing gear, evacuation slides, lighting, cargo systems and other structural components. However, Chairman, President and Chief Executive Marshall Larsen said the delay had no significant impact on the company's second-quarter results and he expects the delay to have a "negligible impact" on income this year or in 2007. Investors' fears were pacified when GR raised its 2006 sales guidance to between $5.75 billion and $5.85 billion, compared to its previous outlook between $5.6 billion and $5.7 billion. Analysts' estimates have been on the rise for both this year and next. Profit forecasts for this year are up 3.5% over the past 60 days. Looking ahead to next year, analysts increased their estimates by 3.8% over the same period of time. Upward revisions were submitted by seven analysts for 2006 and 2007. On Jul 25, the Board of Directors approved a quarterly cash dividend of 20 cents per share of common stock. The dividend is payable Oct 2 to shareholders of record as of Sep 5. GR has a current dividend yield of 2.0%. The company's return on equity exceeds that of the industry average-16% compared to 14%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home