Latest news with #TATTechnologies
Business Insider
a day ago
- Business
- Business Insider
TAT Technologies gets international airline contract for Boeing 777 platform
TAT Technologies (TATT) announced that it has signed a contract with an international commercial carrier to provide MRO services for the GTCP331-500 Auxiliary Power Unit used on the Boeing (BA) 777 platform. The three-year contract is valued at approximately $12M in revenue, averaging $4M per year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
6 days ago
- Business
- Yahoo
TAT Technologies Ltd (TATT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market ...
Release Date: August 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TAT Technologies Ltd (NASDAQ:TATT) achieved double-digit revenue growth for the fourth consecutive quarter, with an 18% increase in Q2 2025 compared to the same period last year. The company's gross profit increased by 35%, and the gross margin expanded by 320 basis points to 25.1%, reflecting improved operational efficiencies. TAT Technologies Ltd (NASDAQ:TATT) increased its long-term agreement value and backlog by $85 million to $524 million, enhancing long-term visibility. The company generated approximately $7 million in positive cash flow from operations during the quarter, demonstrating the strength of its business model. TAT Technologies Ltd (NASDAQ:TATT) successfully completed a public offering, welcoming new institutional investors and increasing financial flexibility for potential acquisitions. Negative Points The company experienced some weaknesses in MRO intake, which affected short-term visibility and created fluctuations in revenue. TAT Technologies Ltd (NASDAQ:TATT) faced challenges due to the strength of the Israeli shekel compared to the US dollar, resulting in increased costs and a reduction in net profit. The aviation sector's macroeconomic and operational headwinds continue to pose challenges, impacting the company's short-term outlook. There is ongoing volatility in the MRO market, with potential short-term fluctuations in intake affecting revenue consistency. The trading and leasing business remains lumpy and difficult to forecast, adding complexity to revenue predictions. Q & A Highlights Warning! GuruFocus has detected 1 Warning Sign with TATT. Q: Can you elaborate on the MRO acceleration comments? Is the recovery broad-based or specific to certain markets? A: (Unidentified_2, CEO) The MRO market is experiencing volatility similar to past trends. Airlines initially reduce MRO work to save cash, leveraging spare inventory. However, as aircraft continue flying, especially older fleets, demand eventually rebounds. This recovery is not specific to any market but is a general trend observed over time. Q: What drove the strong cash flow in the quarter, and how do you view working capital growth going forward? A: (Unidentified_2, CEO) The company has focused on revenue growth, profitability, and now cash flow management. Improved collections and tighter controls have contributed to positive cash flow. We are well-positioned with the right inventories to support market demand and will continue to manage cash flow effectively. Q: How is the APU strategy progressing, particularly with smaller deals and moving upmarket? A: (Unidentified_2, CEO) The APU strategy is progressing well. We are capturing more market share in historical fleets and winning smaller RFPs on new platforms. This approach is promising and reflects in the growth of our backlog and long-term agreements. Q: Can you provide more color on the current dynamics in the APU market, especially regarding spares and maintenance? A: (Unidentified_2, CEO) The APU market is global, with airlines maintaining spare engines to manage short-term needs. Typically, airlines do not perform minimal repairs but wait until spare pools are low before sending engines for full repair. This behavior leads to fluctuations in demand. Q: Regarding M&A, are there specific capabilities or products you are targeting to expand your portfolio? A: (Unidentified_2, CEO) We aim to stay close to our existing capabilities while expanding into more mechanical systems and components. Our strategy focuses on being meaningful to customers by consolidating vendor lists and adding capabilities, particularly in MRO and OEM areas. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
21-06-2025
- Business
- Yahoo
‘Stick to the Bullish Trend': Truist Sees Breakout Ahead for S&P 500 — 2 Stocks That Could Ride the Momentum
Markets roared into the new year on a wave of tech and AI optimism, climbing to record highs in February. That rally briefly lost steam when Trump's erratic tariff rollout injected a dose of uncertainty into the market. But with those concerns now receding, investors are shifting back into risk-on mode, and the S&P 500 is trading less than 3% below its peak. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter On a 12-month basis, Keith Lerner, chief market strategist at Truist, sees this stretch as a period of quiet consolidation — one that could pave the way for further upside. 'If you look at the big picture for the overall market – the S&P – we've been flat for seven months, and the technology sector has been flat for almost a year. As we test these technical levels, I think we'll eventually break above them,' Lerner opined. 'That said, there's likely to be some pain trade… but I think in general, the underlying trend is still positive and we want to stick with that underlying trend.' Taking that outlook to heart, Truist's stock analysts have pinpointed two stocks they believe are primed to benefit from renewed market strength. We've used the TipRanks database to find out what the rest of the Street has to say about both of their recent picks. TAT Technologies (TATT) The first company we'll look at is TAT Technologies, an aerospace tech firm that provides a set of specialized services for the commercial and military aviation industries. These services include thermal solutions, including environmental controls as well as engine and fluid coolant systems; APU support, including service and maintenance of aircraft APUs (auxiliary power units); and landing gear services, to support this key system. At its core, TAT, a global firm, gives its customers a wide-ranging set of technical skills vital to keep aircraft fleets in efficient operating order. TAT was founded in 1969, and brings its decades of experience to bear on aviation problem solving. The company takes a proactive approach, delivering cutting-edge solutions designed to promote customer confidence along with operational efficiency. Aviation is big business, and TAT has leveraged its supporting role to build up a business that generated $152.1 million in revenues last year. In its most recent earnings report, covering 1Q25, TAT showed solid year-over-year growth in both revenue and earnings. The company had a top line of $42.1 million, up almost 24% from 1Q24, and the bottom line of 34 cents per share was up from 19 cents in the prior-year period. We should note that the company's revenue total just missed the forecast, coming in $450,000 below the estimates. On a more positive note, EPS trumped Street expectations by $0.04. For Truist's Michael Ciarmoli, an analyst ranked amongst the top 1% of Wall Street stock pros, the key points for investors here are TAT's solid potential for expansion and growth, and its favorable risk/reward profile. He writes, 'We view TATT as an under the radar small cap comm'l aero aftermarket component repair player poised to drive above market/peer avg growth through share gains and an improved go-to-market strategy. In the coming years as revenues grow and the company scales its operations we believe gross and EBITDA margin expansion will be a key driver of the stock. In the near-term mgmt's execution on its recent APU repair wins and corresponding share gains will be a major focus point. With the stock trading at a 20% discount to its closest peers on an EV/EBITDA basis we believe the risk/reward profile is favorably skewed.' The 5-star analyst goes on to put a Buy rating on this stock, complemented by a $35 price target that suggests a potential one-year upside of 32%. (To watch Ciarmoli's track record, click here) There are only two recent analyst reviews on file for TATT shares, but both are positive – giving the stock its Moderate Buy consensus rating. The shares are priced at $26.44 and their $35.50 average price target implies that the stock will gain 34% in the coming year. (See TATT stock forecast) Peloton Interactive (PTON) Next on our list is Peloton, the well-known home workout company that brought interactive social media to the world of home-based fitness. Peloton has updated an old stand-by – the stationary bicycle – with modern technology, including digital video connections. This forms the base for a connected, online exercise community, allowing Peloton's customers to find the advantages of group exercise classes in their own homes. Peloton leveraged its connectivity to great advantage several years ago, during the COVID pandemic, and has continued to use it as an important selling point that differentiates it from its competition. Peloton has built a community of 6 million members, making it one of the world's largest interactive fitness platforms, however its recent financial results weren't a particularly strong affair. In the last reported quarter, for fiscal 3Q25, the company saw a 13% year-over-year decline in sales. The revenue hit was strongest in the connected fitness segment, at 27%, but also included a 4% decline in subscription revenue. In total, Peloton's revenue came to $624 million. As noted, that was down 13% YoY – although the figure did beat the forecast by $2.67 million. The company's bottom line came to a net loss; the EPS of ($0.12) missed expectations – by 6 cents per share. The company has recognized the weaknesses and is actively working to address them. In January, Peloton launched its Personalized Plans programs and had enrolled 500,000 members by the end of its fiscal Q3 on March 31. Looking ahead to the end of fiscal year 2025, on June 30, Peloton expects to realize an adjusted EBITDA in the range of $330 million to $350 million and to bring in approximately $250 million in free cash flow. This stock has caught the attention of Truist analyst Youssef Squali, who believes that the headwinds have been priced in and that management will likely succeed in its plans to restart revenue and earnings growth. Squali says of Peloton, 'With the BS cleaned up and Opex materially cut to ensure sustainable FCF profitability, the new leadership is now squarely focused on improving the customer experience to drive revenue growth. Mgmt will guide to FY26 in early August, which is likely to be flattish, implying positive Y/Y revenue growth in 2H26, the first time since 2021. For F4Q25 (ending 6/30), our tracking of the Truist Card Data shows that revenue is tracking virtually in line with consensus (thru 6/9). With subscriptions accounting for ~2/3s of revenue, improving profitability and a valuation at 1.6x & 11.4x sales and AEBITDA, we believe that PTON is virtually de-risked with compelling upside.' Quantifying this stance, Squali rates PTON as a Buy, and his $11 price target points toward a hefty gain of 77% on the one-year horizon. (To watch Squali's track record, click here) Overall, Peloton holds a Moderate Buy consensus rating from Wall Street's analysts, based on 13 recent reviews that break down to 5 Buys and 8 Holds. The stock is currently trading for $6.22 and its $7.86 average price target suggests that the shares will gain 26% in the next 12 months. (See PTON stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
Yahoo
30-05-2025
- Business
- Yahoo
TAT Technologies Ltd. (TATT): A Bull Case Theory
We came across a bullish thesis on TAT Technologies Ltd. (TATT) on @1rabbitresearch on X (Twitter). In this article, we will summarize the bulls' thesis on TATT. TAT Technologies Ltd. (TATT)'s share was trading at $30.33 as of 23rd May. TATT's trailing P/E was 26.37 according to Yahoo Finance. Andrey Khachatryan/ TAT Technologies (TATT) received a price target upgrade from Benchmark, raised to $35 from $30, while maintaining a Buy rating, reflecting continued confidence in the company's trajectory. The firm's optimism follows TAT's strong Q4 results, which surpassed expectations in both revenue and margins, marking the ninth consecutive quarter of growth. The company has positioned itself well to sustain this momentum through multiple operational tailwinds. Key among them are expanded capabilities in auxiliary power unit (APU) repairs, which serve as a high-value niche within the aviation aftermarket. Additionally, the firm notes the early stages of a landing gear replacement cycle, which could provide a meaningful revenue lift given TAT's capabilities in this segment. The company is also starting to benefit from contributions related to leasing and trading activity, offering a new growth vector that complements its core repair business. Moreover, rising demand for heat exchangers, driven by both commercial and defense aviation, further strengthens the growth outlook. These tailwinds align with management's consistent execution and improved operational efficiency, which have been visible across the last nine quarters. TAT's ability to deliver strong margin performance in tandem with revenue growth indicates not just a cyclical upswing but also real operational leverage and business improvement. The cumulative impact of these factors supports Benchmark's view that the stock has further upside from current levels, particularly as the company continues to scale its diversified aviation aftermarket offerings. The upgraded price target reflects increased confidence in earnings durability and valuation upside as execution remains strong. TAT Technologies Ltd. (TATT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held TATT at the end of the fourth quarter which was 3 in the previous quarter. While we acknowledge the risk and potential of TATT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TATT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
25-05-2025
- Business
- Yahoo
Benchmark Reaffirms Buy on TAT Technologies (TATT) After Major MRO Deal
Benchmark analysts reaffirmed their Buy rating on TAT Technologies Ltd. (NASDAQ:TATT) and maintained a $35 price target on May 23, after the company secured an expanded maintenance, repair, and overhaul partnership with a major international cargo carrier. The project's estimated value ranges from $45 million to $55 million over the next five years and the new contract focuses on maintenance support for various aircraft, such as the Airbus A300 and Boeing 737, 757, 767, and 777. Although the identity of the cargo carrier was not revealed, analysts speculate that it might be one of the leading players in the market, such as UPS, FedEx, and DHL, given that TAT Technologies Ltd. (NASDAQ:TATT) has made reference to current contracts and possible expansion prospects within these companies' product lines. Benchmark holds confidence in TAT Technologies' business plan and the projected impact of the new MRO collaboration on the company's financial results in the years to come. Igal Zamir, the CEO of TAT, also emphasized the contract as evidence of the company's "Customer First" policy and the growing recognition of its maintenance and repair capabilities. While we acknowledge the potential of TATT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TATT and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None. 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
