Latest news with #Astronics
Yahoo
10 hours ago
- Business
- Yahoo
Astronics Soars 118% YTD: Should You Buy, Hold or Fold the Stock?
Astronics Corporation's ATRO shares have surged a solid 118.4% in the year-to-date period, outperforming both the Zacks Aerospace-Defense Equipment industry and the broader Zacks Aerospace sector's gain of 19.3%. It also came above the S&P 500's return of 1.2% in the same time frame. Image Source: Zacks Investment Research Other industry players like Leonardo DRS DRS and Curtiss-Wright Corp. CW have delivered a similar stellar performance in the same period. Shares of DRS and CW have surged 42.8% and 33.4%, respectively, year to date. With global air travel rising steadily of late and defense modernization gaining pace, aerospace technology stocks like Astronics have been witnessing strong upward momentum, as evident from its aforementioned share price hike. This may prompt investors to consider adding ATRO to their portfolios. However, before making a hasty investment call, it's crucial to explore the key factors fueling ATRO's recent share price momentum, its prospects for sustained growth, and risks (if any) that could affect future investor returns. Astronics has gained strong investor confidence in 2025, driven by robust quarterly results, innovative product launches and industry recognition. The company began the year by announcing preliminary fourth-quarter and full-year 2024 revenues. Quarterly revenues of $208-$210 million (up 7% at the midpoint) and full-year revenues of $796 million reflected a 15.5% increase year-over-year. In April, Astronics launched the SkyShow Server — an advanced moving map system with 4K visuals and real-time flight data — raising the bar for in-flight entertainment and aircraft cabin integration. The same month, its EmPower UltraLite G2 Power System earned the 2025 PAX Award for Best In-Seat Power Solution, underscoring its innovation and leadership in passenger power systems. In May, Astronics reported a strong first-quarter performance, with revenues rising 11.3% year over year and gross profit up 28.1%, driven by strength in its Aerospace segment. Backed by record bookings of $279.7 million, the company's backlog surged to a historic high of $673 million as of March 2025. Together, these achievements have significantly strengthened Astronics' investor sentiment, which has been reflected in its share price hike. Astronics ended March 2025 with cash and cash equivalents of $26 million. While its long-term debt totaled $160 million as of first-quarter 2025-end, its current debt was nil. So, it is safe to conclude that the stock boasts a solid solvency position in the near term, which, in turn, should enable ATRO to invest in new product innovation. After all, technological innovation is a major growth catalyst for stocks like ATRO, as both the commercial and defense aerospace markets increasingly thrive on next-gen solutions. Looking ahead, as airlines expand their fleets and enhance passenger experiences, driven by rapidly growing air travel demand worldwide, there is a heightened demand for advanced cabin power systems and in-flight entertainment and connectivity (IFEC) solutions. This should bode well for Astronics, which is already capitalizing on this trend, as evident from the 13.3% year-over-year increase in its first-quarter 2025 Commercial Transport sales. Now, let's take a sneak peek at ATRO's near-term earnings and sales estimates to check whether they also reflect similar growth prospects. The Zacks Consensus Estimate for ATRO's 2025 sales suggests year-over-year growth of 6.4%, while that for 2026 sales indicates an improvement of 8.5%. The 2025 and 2026 bottom-line estimates show a similar improving trend. Moreover, the upward revision in its yearly earnings estimate indicates that investors are gaining confidence in this stock's earnings capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research In terms of valuation, ATRO's forward 12-month price-to-earnings (P/E) is 21.10X, a discount to the industry average of 46.49X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared to that of its industry average. Image Source: Zacks Investment Research Other industry peers are trading at a premium to ATRO. While DRS is trading at a forward 12-month P/E of 39.46X, CW is trading at 36.38X. The primary challenges that aerospace-defense stocks like ATRO, CW, and DRS continue to face include varying levels of supply-chain pressures stemming from the residual impacts of the COVID-19 pandemic, shortage of raw material, cost increases, and a rise in labor costs and labor shortage, particularly for skilled labor. Moreover, the recently imposed heightened tariff on the import of goods from almost all trading partners of the United States is likely to exacerbate the supply-chain challenge, which, altogether, might cause a delay in the delivery of finished products by ATRO. This, in turn, may hurt its operational results. To conclude, investors interested in ATRO may consider adding this stock to their portfolio, given its discounted valuation, upbeat near-term sales estimates, impressive share price performance, and upward revision in earnings estimates. The stock has a VGM Score of A, which is also a favorable indicator of strong performance. The company's Zacks Rank #1 (Strong Buy) further supports our thesis. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astronics Corporation (ATRO) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Leonardo DRS, Inc. (DRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
5 days ago
- Business
- Yahoo
Curtiss-Wright (NYSE:CW) Q1 Earnings: Leading The Aerospace Pack
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the aerospace industry, including Curtiss-Wright (NYSE:CW) 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 15 aerospace stocks we track reported a strong Q1. As a group, revenues missed analysts' consensus estimates by 1.4% while next quarter's revenue guidance was 0.5% below. Luckily, aerospace stocks have performed well with share prices up 21.7% on average since the latest earnings results. 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 $805.6 million, up 13% year on year. This print exceeded analysts' expectations by 5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' EBITDA estimates. "I'm proud of our team's outstanding first quarter 2025 performance as we delivered significant increases in new orders, sales, operating income and diluted EPS, and continued to execute on our Pivot to Growth strategy," said Lynn M. Bamford, Chair and CEO The stock is up 31.6% since reporting and currently trades at $477. We think Curtiss-Wright is a good business, but is it a buy today? Read our full report here, it's free. Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries. Astronics reported revenues of $205.9 million, up 11.3% year on year, outperforming analysts' expectations by 7.3%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Astronics pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 53.5% since reporting. It currently trades at $36.05. Is now the time to buy Astronics? Access our full analysis of the earnings results here, it's free. Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE:HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors. Hexcel reported revenues of $456.5 million, down 3.3% year on year, falling short of analysts' expectations by 3.4%. It was a disappointing quarter as it posted full-year revenue and EPS guidance missing analysts' expectations. Hexcel delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 10.8% since the results and currently trades at $55.93. Read our full analysis of Hexcel's results here. 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 $194.1 million, up 1.7% year on year. This print surpassed analysts' expectations by 0.7%. It was an exceptional quarter as it also put up an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' EPS estimates. The stock is up 30.5% since reporting and currently trades at $76.40. Read our full, actionable report on Ducommun here, it's free. 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 $19.5 billion, up 17.7% year on year. This number missed analysts' expectations by 0.6%. Aside from that, it was a very strong quarter as it recorded an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The stock is up 25.5% since reporting and currently trades at $203.95. Read our full, actionable report on Boeing here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Time to Buy Aerospace Defense Stocks for Higher Highs
Among the Zacks Rank #1 (Strong Buy) list, several Aerospace Defense stocks are standing out and have reached new 52-week highs this week. Benefiting from increased global military spending and growing demand for defense technology, these stocks are seeing a pleasant trend of rising earnings estimate revisions, pointing to more upside ahead. Howmet Aerospace HWM and Safran SAFRY are the two standouts from the Zacks Aerospace-Defense Industry, which is in the top 16% of over 240 Zacks industries. Both provide critical components for aircraft engines, with Howmet and Safran stock sitting on year-to-date gains of +55% and +35% respectively, to outperform the industry's return of +17%. Headquartered in France, Safran is attracting investor interest as the company has seen a surge in aircraft orders amid geopolitical uncertainties in Europe. Meanwhile, Pittsburgh-based Howmet has continued its steady top and bottom-line growth thanks to international expansion with operations throughout North America and Europe, Australia, China, and Japan. Image Source: Zacks Investment Research Placing three stocks on the Zacks Rank #1 (Strong Buy) list, including Astronics ATRO, Elbit Systems ESLT, and Triumph Group TGI, is the Zacks Aerospace-Defense Equipment Industry, currently in the top 17% of all Zacks industries. Astronics, Elbit, and Triumph have noticeably outperformed their peers, with the Aerospace-Defense Equipment Industry having a return of +14% YTD. Astronics has led the way with gains of nearly +100% this year as a manufacturer of specialized lighting and electronics for the cockpit, cabin, and exteriors of military, commercial transport, and private business jet aircraft. Furthermore, Elbit has a unique niche as a worldwide leader in Night Vision Goggles Head-Up Displays (NVG-HUD) for use in various types of helicopters, with Triumph producing a wide range of aircraft parts. Image Source: Zacks Investment Research Notably, the Zacks Aerospace-Defense Equipment industry has a projected EPS growth rate of 18.54% in 2025, with Astronics and Elbit's projections being above this level, while Triumph's annual earnings are expected to increase a respectable 14%. Image Source: Zacks Investment Research Most intriguing to the notion that these aerospace defense stocks could have more upside is that their EPS estimates have trended higher for fiscal 2025 and FY26. Even better, with their appealing growth expected to continue next year, it may still be an ideal time to buy. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Triumph Group, Inc. (TGI) : Free Stock Analysis Report Astronics Corporation (ATRO) : Free Stock Analysis Report Elbit Systems Ltd. (ESLT) : Free Stock Analysis Report Safran SA (SAFRY) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Health Catalyst, Steven Madden, Astronics, Wayfair, and Robinhood Shares Are Soaring, What You Need To Know
A number of stocks jumped in the pre-market session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Data Analytics company Health Catalyst (NASDAQ:HCAT) jumped 8.5%. Is now the time to buy Health Catalyst? Access our full analysis report here, it's free. Footwear company Steven Madden (NASDAQ:SHOO) jumped 5.1%. Is now the time to buy Steven Madden? Access our full analysis report here, it's free. Aerospace company Astronics (NASDAQ:ATRO) jumped 5.3%. Is now the time to buy Astronics? Access our full analysis report here, it's free. Online Retail company Wayfair (NYSE:W) jumped 8.4%. Is now the time to buy Wayfair? Access our full analysis report here, it's free. Financial Technology company Robinhood (NASDAQ:HOOD) jumped 5.2%. Is now the time to buy Robinhood? Access our full analysis report here, it's free. Health Catalyst's shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 10 months ago when the stock gained 40.1% on the news that the company reported strong second-quarter 2024 results that narrowly topped analysts' revenue expectations, while EPS beat by a more convincing margin. Adjusted EBITDA and free cash flow also beat Wall Street's estimates during the quarter. On the other hand, its revenue guidance for the next quarter missed analysts' expectations, and its gross margin shrank. Overall, this was a mixed, yet decent quarter for the company. Health Catalyst is down 48.7% since the beginning of the year, and at $3.76 per share, it is trading 58.3% below its 52-week high of $9.02 from December 2024. Investors who bought $1,000 worth of Health Catalyst's shares 5 years ago would now be looking at an investment worth $136.73. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
HEICO (HEI) To Report Earnings Tomorrow: Here Is What To Expect
Aerospace and defense company HEICO (NSYE:HEI) will be reporting earnings tomorrow after the bell. Here's what to expect. HEICO beat analysts' revenue expectations by 5.4% last quarter, reporting revenues of $1.03 billion, up 14.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' EPS estimates. Is HEICO a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting HEICO's revenue to grow 11% year on year to $1.06 billion, slowing from the 38.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HEICO has missed Wall Street's revenue estimates four times over the last two years. Looking at HEICO's peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Curtiss-Wright delivered year-on-year revenue growth of 13%, beating analysts' expectations by 5%, and Astronics reported revenues up 11.3%, topping estimates by 7.3%. Curtiss-Wright traded up 4.3% following the results while Astronics was also up 16.6%. Read our full analysis of Curtiss-Wright's results here and Astronics's results here. There has been positive sentiment among investors in the aerospace segment, with share prices up 7.9% on average over the last month. HEICO is up 8.3% during the same time and is heading into earnings with an average analyst price target of $269.69 (compared to the current share price of $268). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
