Q3 Earnings Outperformers: Boeing (NYSE:BA) And The Rest Of The Aerospace Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the aerospace industry, including Boeing (NYSE:BA) 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 12 aerospace stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Boeing (NYSE:BA)

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Boeing reported revenues of $17.84 billion, down 1.5% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," said Kelly Ortberg, Boeing President and Chief Executive Officer.

Unsurprisingly, the stock is down 13.5% since reporting and currently trades at $138.25.

Read our full report on Boeing here, it’s free.

Best Q3: 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 $201.4 million, up 2.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $68.44.

Is now the time to buy Ducommun? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Textron (NYSE:TXT)

Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.

Textron reported revenues of $3.43 billion, up 2.5% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 1.6% since the results and currently trades at $85.45.

Read our full analysis of Textron’s results here.

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 $82.68 million, down 10.6% year on year. This result missed analysts’ expectations by 11.1%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ adjusted operating income and EPS estimates.

AerSale had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 1% since reporting and currently trades at $5.96.

Read our full, actionable report on AerSale here, it’s free.

TransDigm (NYSE:TDG)

Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation.

TransDigm reported revenues of $2.19 billion, up 18% year on year. This print topped analysts’ expectations by 0.6%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.

TransDigm had the weakest full-year guidance update among its peers. The stock is down 7.7% since reporting and currently trades at $1,275.

Read our full, actionable report on TransDigm here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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