TRW Reports Another Strong Quarter, Estimates Raised

Deutsche Bank has published a research report on TRW Automotive Holdings Corporation TRW after the company's 3Q results greatly exceeded expectations....again. In the report, Deutsche Bank writes "TRW reported Q3 EPS of $1.47 vs. our $0.89 estimate and consensus of $0.80. While these results included $20MM ($0.13 of EPS) of one time operational positives, we still view these results as significantly better than expected. Revenue of $3.42bn was ahead of our $3.26bn est. Incremental operating margin (ex FX) of 24% was ahead of our 17% est, primarily because SG&A was only 3.5% of sales vs. our 4.1% est. FCF of +$206MM was well ahead of our estimate of a $31MM burn." Deutsche Bank maintains its Buy rating and $57 price target. TRW Automotive closed yesterday at $47.76.