Group 1 - Astronics (NASDAQ: ATRO) stock experienced a decline in November following the announcement of convertible notes issuance [1] - The analysis indicated potential dilution but maintained a strong buy rating, which has proven to be a favorable decision [1] - The investing group, The Aerospace Forum, focuses on identifying investment opportunities within the aerospace, defense, and airline sectors, leveraging data analytics for informed decision-making [1] Group 2 - The analyst behind the report has a beneficial long position in Boeing (BA) shares, indicating confidence in the stock's performance [1] - The article emphasizes the importance of data-informed analysis in understanding complex industry dynamics and their impact on investment strategies [1]

Core Viewpoint - Astronics Corporation (ATRO) presents a strong investment opportunity in the Aerospace Defense Equipment industry due to rising earnings estimates, low debt levels, high liquidity, and an increasing backlog [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for Astronics' 2025 earnings per share (EPS) has risen by 6.4% to $1.17 over the past 60 days, reflecting a 129.4% increase from the previous year's estimate [2] - The consensus estimate for total revenues in 2025 is $837.8 million, indicating a growth of 7.6% from the 2024 estimate [2] - Astronics achieved an earnings surprise of 94.44% in the last reported quarter [2] Debt Position - The company's total debt to capital ratio stands at 41.8%, which is better than the industry average of 54.02% [3] Liquidity - Astronics' current ratio at the end of the third quarter was 2.83, indicating a strong ability to meet future short-term liabilities [4] Rising Backlog - As of September 28, 2024, Astronics reported a backlog of $611.9 million, an increase from $586.6 million at the end of 2023, enhancing revenue-generating potential for upcoming quarters [5] Stock Price Performance - ATRO shares have decreased by 1.7% over the past month, compared to a 2.5% decline in the industry [6] Other Stocks to Consider - Other notable stocks in the same industry include Mercury Systems (MRCY), Triumph Group (TGI), and Leonardo DRS, Inc. (DRS), with Triumph Group currently holding a Zacks Rank of 1 [7]

Core Viewpoint - Astronics Corporation (ATRO) is facing challenges due to supply-chain pressures and recent customer bankruptcies, but there are optimistic projections for future earnings and sales growth driven by increased demand in the aerospace and defense sectors [1][2][3][4][6]. Group 1: Financial Performance - ATRO's shares have declined by 9.5% year-to-date, underperforming the Zacks Aerospace-Defense Equipment industry's gain of 34% and the S&P 500's return of 25.3% [15]. - The Zacks Consensus Estimate for ATRO's earnings for the current year (2024) is $0.51, with a projected growth of 163.75% year-over-year, and for the next year (2025), it is $1.17, indicating a growth of 129.41% [11][20]. - Sales estimates for 2024 are projected at $778.60 million, reflecting a year-over-year growth of 12.97%, while 2025 sales are expected to reach $837.79 million, with a growth of 7.60% [19][26]. Group 2: Market Position and Valuation - ATRO's forward 12-month price-to-earnings (P/E) ratio is 13.62X, which is a discount compared to its peer group's average of 21.92X, suggesting a favorable valuation for investors [21]. - Despite challenges, ATRO achieved a solid 25% revenue growth in Q3 2024, driven by demand for inflight entertainment products and military programs [25]. Group 3: Industry Trends and Outlook - The global air travel outlook for the upcoming year is positive, alongside increasing defense budgets from the U.S. and other nations, which is expected to boost ATRO's operational results [3]. - The bankruptcy of Lilium, a customer in the aerospace segment, resulted in charges of approximately $2.2 million for ATRO, highlighting the risks associated with customer dependencies [2][24].

Group 1 - The article discusses Astronics Corporation (NASDAQ: ATRO) and highlights a recent announcement regarding a $150 million offering [1] - The author, Dhierin, leads The Aerospace Forum, which focuses on identifying investment opportunities in the aerospace, defense, and airline sectors [1] - The analysis provided is data-driven, emphasizing the significant growth prospects within the aerospace industry [1] Group 2 - The article does not provide any specific financial performance metrics or detailed analysis of Astronics Corporation's recent performance [2]

Core Insights - The article discusses the performance of Astronics (NASDAQ: ATRO), which has gained only 12% since October 2023, underperforming compared to the S&P 500's 42% gain [1]. Company Analysis - Astronics has been covered by an analyst with a buy rating since October 2023, but the stock's performance has not met expectations [1]. - The analyst provides insights into the aerospace, defense, and airline industry, highlighting significant growth prospects and the importance of data-informed analysis [1]. Industry Context - The investing group, The Aerospace Forum, aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging a background in aerospace engineering for analysis [1].

Core Viewpoint - Astronics Corporation (ATRO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when estimates are revised [3]. Company Performance Indicators - For the fiscal year ending December 2024, Astronics is expected to earn $0.51 per share, reflecting a 163.8% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Astronics has increased by 41.7%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [8][10].

Financial Data and Key Metrics - Sales increased by 25% year-over-year, reaching the high end of the forecasted range [8] - Adjusted net income was $12.2 million, or $0.35 per share [8] - Adjusted EBITDA was $27 million, representing 13% of sales [8] - Trailing 12 months adjusted EBITDA stands at $91 million [8] - GAAP gross margins improved to 21%, up 8.3 points from the prior year [21] - Adjusted gross margin improved to 23% [21] - GAAP loss per share for the quarter was $0.34, while adjusted earnings per share was $0.35 [25] - Net debt at the end of the quarter was approximately $174 million, with $60 million available on the revolver [27] Business Segment Performance - Aerospace segment sales increased by 25% for the quarter and 19% for the year, with adjusted operating margin improving to 14.2% from 3.5% in the prior year [9] - Aerospace segment represented 88% of the business, with a $22 million improvement in operating income driven by higher sales volume and improved productivity [28] - Adjusted operating profit for Aerospace was $25.3 million, compared to $5 million in the prior year period [30] - Test segment was near breakeven, primarily due to lower legal fees and less favorable sales mix [31] Market and Industry Trends - Supply chain improvements have contributed to better performance, with fewer issues reported compared to previous quarters [10][11] - Input cost pressures have subsided, and workforce efficiency has improved [12] - Pricing adjustments negotiated during the inflationary period are now taking effect, benefiting major programs [13] - Demand remains strong, with a backlog of $612 million entering the fourth quarter, significantly higher than the $400-$420 million range in 2018-2019 [14] Strategic Direction and Competition - The company is focused on volume and margin improvement initiatives, which are showing positive results [9] - The company is involved with multiple eVTOL customers, with a standardized architecture that reduces exposure to customization risks [17] - The company is preparing for potential legal damages related to a patent infringement case, with reserves of $7.4 million and possible damages up to $105 million [34] Management Commentary on Operating Environment and Future Outlook - Management expects fourth-quarter sales to be in the range of $190 million to $210 million, with a full-year forecast of $777 million to $797 million, representing a 14.2% increase at the midpoint [37] - The company anticipates continued growth in 2025, though potentially at a slower pace than 2024, with margin improvements expected [38] - The Boeing strike impacted third-quarter revenues by approximately $3 million, with a more significant impact expected in the fourth quarter [36] Other Important Information - The company incurred $7 million in expenses related to the refinancing of its credit facility [15] - Legal expenses of $5.6 million were recorded in the quarter, related to a hearing in the UK [16] - A $2.2 million charge was taken due to the bankruptcy of eVTOL customer Lilium [16] - A $3.5 million warranty reserve was recorded for an electrical power system experiencing reliability issues [18] Q&A Session Summary Question: Impact of Boeing strike on monthly revenue and future ramp-up [40] - The company expects Boeing to start slow and accelerate production throughout 2025, with initial shipment rates potentially around 20 ship sets per month, down from 32-33 previously [45] - The strike led to inventory accumulation, which will need to be burned down before normal operations resume [41] Question: Margin impact from lower Boeing shipment rates [46] - The company does not expect a material impact on margins, as the work remains profitable despite lower volumes [46] Question: Cash flow and net debt improvement in Q4 [47] - Strong cash flow is expected in the fourth quarter, with net debt already reduced to $168 million [47] Question: Revenue split between new production and aftermarket [49] - The company has been running around 50-50 between line fit and aftermarket, with the Boeing strike potentially skewing the mix towards aftermarket by $8-$10 million [50] Question: Opportunities with Southwest Airlines for IFE power products [51] - The company is already a major supplier to Southwest and has developed a new USB Type-C power architecture, which is featured in Southwest's new cabins [52][53] Question: Legal damages and competitive impact [55] - The company does not expect the legal case to impact its competitive position, as the patents in question have expired [56] - The company is financially stronger and has options to manage potential damages, with appeals likely to extend the legal process [57][58] Question: Test business strength and future outlook [60] - The Test segment saw a jump to $25 million in sales, but this is not expected to be sustained, with restructuring efforts aimed at preparing for a major U.S. Army program expected to start in late 2025 [60][61] Question: Future legal expenses [62] - Legal expenses are expected to be relatively quiet, with potential appeals in the UK and Germany not expected until late 2025 or 2026 [62]

Astronics Corporation (ATRO) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 94.44%. A quarter ago, it was expected that this company would post earnings of $0.17 per share when it actually produced earnings of $0.04, delivering a surprise of -76.47%.Over the last four quarters, the compa ...

Exhibit 99.1 Astronics Corporation • 130 Commerce Way • East Aurora, NY • 14052-2164 For more information, contact: Company: Investor Relations: David C. Burney, Chief Financial Officer Deborah K. Pawlowski, Kei Advisors LLC Phone: (716) 805-1599, ext. 159 Phone: (716) 843-3908 Email: david.burney@astronics.com Email: dpawlowski@keiadvisors.com FOR IMMEDIATE RELEASE 1 Astronics Corporation Reports 25% Growth in Sales in 2024 Third Quarter • Sales increased $40.8 million to $203.7 million, highest quarterly ...

Astronics Corporation (NASDAQ:ATRO) Q2 2024 Results Conference Call August 1, 2024 4:45 PM ET Company Participants Debra Pawlowski - Investor Relations Pete Gundermann - Chairman, President & Chief Executive Officer Dave Burney - Chief Financial Officer` Conference Call Participants Jon Tanwanteng - CJS Securities Michael Ciarmoli - Truist Scott Lewis - Lewis Capital Operator Good day, everyone, and welcome to the Astronics Corporation Second Quarter 2024 Financial Results Conference Call. All participants ...