Astronics Corporation (NASDAQ:ATRO) Earnings Preview
Aerospace and defense technology solutions provider Astronics Corporation will be reporting its fourth-quarter earnings this Tuesday after market close. Here’s what investors need to know.
Last quarter, Astronics met analysts’ revenue expectations, reporting revenues of $211.4 million, which represents a 3.8% increase year on year. It was a strong quarter for the company, with notable beats in analysts’ EBITDA and EPS estimates.
Market Expectations
This quarter, the market anticipates a 13.7% year-on-year revenue growth for Astronics, an improvement from the 6.8% growth recorded in the same quarter last year. Analysts covering Astronics have reconfirmed their estimates over the last month, indicating expectations for stable performance heading into earnings. However, the company has missed Wall Street’s revenue estimates several times over the past two years.
Peer Performance
When looking at Astronics’ peers in the aerospace segment, some companies have already reported their Q4 results, which may provide insight into what to expect. Woodward achieved a 29% year-on-year revenue growth, surpassing analysts’ expectations by 11.9%. Meanwhile, Boeing reported a staggering 57.1% increase in revenues, exceeding estimates by 6.9%. Following these results, Woodward's stock rose by 13.4%, while Boeing saw a decline of 2.8%.
Investor Sentiment
Investor sentiment in the aerospace segment appears positive, with average share prices up 7.1% over the past month. Astronics has gained 1.4% during this period and is entering the earnings announcement with an average analyst price target of $76.98, compared to its current share price of $78.81.
For those considering the stock, it’s worth noting that when a company has excess cash, buying back shares can be a sound strategy, provided the price is right. There are opportunities in the market, including stocks with robust free cash flow and share buyback initiatives.
For further insights, check out our full analysis on Inside Ticker.