Aerospace Stocks Q2 In Review: Astronics (NASDAQ:ATRO) Vs Peers
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the aerospace stocks, including Astronics (NASDAQ:ATRO) and its peers.
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.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, aerospace stocks have held steady amidst all this with share prices up 4.3% on average since the latest earnings results.
Astronics (NASDAQ:ATRO)
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQGS:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Astronics reported revenues of $198.1 million, up 13.6% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a very strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations.
Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “Our second quarter confirmed success with increased demand, new program wins, and our ability to deliver product to our customers more efficiently and predictably. We exceeded our guidance with 14% growth in sales and improved profitability. Bookings were at a post-pandemic high, resulting in yet another record backlog. Our strong performance supports raising our expectations for the year. Looking beyond 2024, our market leadership positions, the significant programs that we have won recently, and our high level of innovation point to a long runway for delivering value and improved earnings power.”
Astronics pulled off the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 7% since reporting and currently trades at $20.30.
Is now the time to buy Astronics? Access our full analysis of the earnings results here, it’s free.
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%. Taking a step back, it was a very strong quarter for the company with a solid beat of analysts’ Fastening systems 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.
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, surpassing analysts’ expectations by 6.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ earnings estimates.
The stock is up 12.5% since reporting and currently trades at $301.41.
Read our full, actionable report on Curtiss-Wright here, it’s free.
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