Winners And Losers Of Q2: Curtiss-Wright (NYSE:CW) Vs The Rest Of The Aerospace Stocks
Let’s dig into the relative performance of Curtiss-Wright (NYSE:CW) and its peers as we unravel the now-completed Q2 aerospace earnings season.
Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.
The 13 aerospace stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, aerospace stocks have held steady amidst all this with share prices up 4.4% on average since the latest earnings results.
Curtiss-Wright (NYSE:CW)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Curtiss-Wright reported revenues of $784.8 million, up 11.4% year on year. This print exceeded analysts’ expectations by 6.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ earnings estimates.
"Curtiss-Wright delivered strong second quarter results, highlighted by mid-teens revenue growth in our A&D end markets, continued operating margin expansion, and 24% growth in Adjusted diluted EPS," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.
Interestingly, the stock is up 12.5% since reporting and currently trades at $301.41.
Best Q2: Ducommun (NYSE:DCO)
California’s oldest company, Ducommun (NYSE:DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Ducommun reported revenues of $197 million, up 5.2% year on year, outperforming analysts’ expectations by 1.1%. It was an exceptional quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 9.4% since reporting. It currently trades at $64.88.
Is now the time to buy Ducommun? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: AerSale (NASDAQ:ASLE)
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft.
AerSale reported revenues of $77.1 million, up 11.2% year on year, falling short of analysts’ expectations by 12.7%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
AerSale posted the weakest performance against analyst estimates in the group. As expected, the stock is down 5.2% since the results and currently trades at $5.28.
Read our full analysis of AerSale’s results here.
Howmet (NYSE:HWM)
Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Howmet reported revenues of $1.88 billion, up 14.1% year on year, surpassing analysts’ expectations by 2.5%. Revenue aside, it was a very strong quarter for the company with a solid beat of analysts’ revenue estimates.
The stock is up 16.5% since reporting and currently trades at $96.57.
Read our full, actionable report on Howmet here, it’s free.
Redwire (NYSE:RDW)
Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.
Redwire reported revenues of $78.11 million, up 30% year on year, surpassing analysts’ expectations by 14.2%. Revenue aside, it was a weaker quarter for the company with a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.
Redwire pulled off the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 19% since reporting and currently trades at $6.83.
Read our full, actionable report on Redwire here, it’s free.
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