Cpi Aerostructures (NYSE AMEX:CVU)

Cpi Aerostructures shares have been under selling pressure today.  The company reported 2009 first quarter results this morning. EPS was $.09, up nearly 30% from the same period last year. 

 Investors seem to be focusing on two parts of the release:

• Due to lower margins, EPS was sequentially down from 2008 fourth quarter EPS of $0.15.
  
• New orders totaled $4.5 million compared to $10.7 million, causing some investors to possibly question previous financial guidance information.

The company clearly addressed both of these issues in their conference call.

• Reduced margins were the result  of "additional costs incurred in the early stages of new programs related to customer changes to engineering and design requirements."  This is not an uncommon situation for Cpi Aerostructures. The company was very specific in confirming that margins will improve to historical levels as they progress through 2009.
  
• The company made it very clear that, their previously issued financial guidance does not give much weight to new order bookings.  It mainly reflects long-term contracts that the company has already won, giving them a high degree of visibility for the next three years.   Also, their are significant outstanding orders available for bids ( $360 million).

The company was very adamant that, as it currently stands, their previous guidance is still in tact.

One more note:  The company stated they intend to aggressively pursue investor awareness activities.

The GeoTeam® suggests that current and prospective investors listen to the conference call replay.   In the opinion of the GeoTeam®, the call was very bullish.  The GeoTeam® added to its long position on the stock's pull back.