What's Going On At Goodrich?

Considering Aircraft components maker Goodrich topped estimate, why did shares plunge on Thursday?

Although profits were lower, they still came to $177 million for the quarter with sales around $1.7 billion. Income from continuing operations was $1.15 per share while analysts expected $1.11 per share according to Thomson Reuters.

In other words, they beat.

“Our second-quarter results demonstrate our ability to maintain operating margins in challenging economic times,” says Chief Executive Marshall Larsen. “We have been able to sustain these margins through the continued success of our cost-containment initiatives, the balance of our business mix and the increased productivity of our employees.”

However, it seems the company may be facing some strong headwinds.

On the commercial aerospace side, it's a fundamental view that the airlines still aren't making money, says Wayne Plucker, aerospace and defense analyst with Frost & Sullivan. There's no real big light at the end of the tunnel.

And that’s not the only negative. Investors are also concerned down the road President Obama may need to slash budgets with aerospace not being a particular favorite of his.

However Larsen tells Fast Money those concerns are unwarranted. “We’ve positioned our defense business on those parts of the defense budget that are continuing to grow,” he explains.

And he tells us, in other parts of his company business is brisk and appears to be staying that way, at least through the end of 2009.

What’s the trade?

If you’re looking to play the space I think Goodrich is a better play than Boeing , counsels Steve Grasso.

For me it boils down to whether you think there was a trough in Q2, says Joe Terranova. If you feel that way than it’s a good play but I’m not sure Q2 was the trough.

For more of our interview with Goodrich CEO Marhsall Larsen please watch the video.

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Trader disclosure: On July 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (MCD), (AXP), (AMZN), (MSFT), (QCOM), (SUN), (FTO), (SU), (GS), (APA), (GOOG), (IBM), (INTC), (XBI), (BNI); Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (RIG), (WMT); Finerman's Firm Is Short (USO), (IJR), (IYR), (IWM), (MDY), (SPY); Finerman's Firm Owns (WFMI) Calls; Finerman's Firm And Finerman Own (BAC) Preferred Shares; Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Grasso Owns (BAC), (BA), (COST), (CSCO), (V), (WMT), (CLF); Grasso's Company Owns (ABT), (MSFT), (GERN), (NYX), (XOM), (SDS); Grasso's Company Is Short (QQQQ)