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Unpacking Q1 Earnings: Astronics (NASDAQ:ATRO) In The Context Of Other Aerospace Stocks


Petr Huřťák /
2024/07/09 3:32 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how aerospace stocks fared in Q1, starting with Astronics (NASDAQ:ATRO).

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 15 aerospace stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 4%. while next quarter's revenue guidance was 1.8% above consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but aerospace stocks have performed well, with the share prices up 12.4% on average since the previous 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 $185.1 million, up 18.2% year on year, topping analysts' expectations by 6.8%. It was a mixed quarter for the company: Astronics blew past analysts' revenue expectations this quarter. On the other hand, its operating margin missed and its EPS fell short of Wall Street's estimates.

Peter J. Gundermann, Chairman, President and Chief Executive Officer, commented, “We had a very strong start to the year with first quarter revenue up 18% over the comparator quarter and easily beating our guidance for the quarter. Our financial results demonstrate our improved performance with first quarter adjusted EBITDA of $19 million, or 10.3% of sales. In addition, we had very strong bookings during the quarter, resulting in another record backlog. We are encouraged with the strong start to 2024 and believe we are well positioned to enjoy continued tailwinds throughout the remainder of the year.”

Astronics Total Revenue

The stock is up 18.7% since the results and currently trades at $20.48.

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

Best Q1: Moog (NYSE:MOG.A)

Responsible for the flight control actuation system integrated in the B-2 stealth bomber, Moog (NYSE:MOG.A) provides precision motion control solutions used in aerospace and defense applications.

Moog reported revenues of $930.3 million, up 11.2% year on year, outperforming analysts' expectations by 6.5%. It was an incredible quarter for the company, with revenue and operating margin exceeding analysts' estimates.

Moog Total Revenue

The stock is up 8.4% since the results and currently trades at $170.44.

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

Weakest Q1: 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 $3.14 billion, up 3.7% year on year, falling short of analysts' expectations by 4%. It was a weak quarter for the company, with a miss of analysts' organic revenue and earnings estimates.

Textron had the weakest performance against analyst estimates in the group. The stock is down 5.4% since the results and currently trades at $88.88.

Read our full analysis of Textron'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 $1.82 billion, up 13.8% year on year, surpassing analysts' expectations by 5.1%. It was an impressive quarter for the company, with a solid beat of analysts' Fastening systems revenue estimates and a decent beat of analysts' earnings estimates.

The stock is up 20.9% since the results and currently trades at $80.74.

Read our full, actionable report on Howmet here, it's free.

Woodward (NASDAQ:WWD)

Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.

Woodward reported revenues of $835.3 million, up 16.3% year on year, surpassing analysts' expectations by 3.3%. It was a stunning quarter for the company, with an impressive beat of analysts' organic revenue estimates and optimistic earnings guidance for the full year.

Woodward scored the highest full-year guidance raise among its peers. The stock is up 14.5% since the results and currently trades at $172.8.

Read our full, actionable report on Woodward here, it's free.

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