Core Viewpoint - Astronics Corporation (ATRO) is identified as a strong momentum stock with a Zacks Rank of 1 (Strong Buy) and a Momentum Style Score of A, indicating potential for significant near-term price appreciation [3][11]. Company Performance - ATRO shares have increased by 9.14% over the past week, outperforming the Zacks Aerospace - Defense Equipment industry, which rose by 4.95% during the same period [5]. - Over the last month, ATRO's stock price has changed by 21.06%, compared to the industry's performance of 11.82% [5]. - In the past quarter, ATRO shares have surged by 43.51%, and over the last year, they have gained 44.28%, while the S&P 500 has seen declines of -5.75% and gains of 10.63%, respectively [6]. Trading Volume - The average 20-day trading volume for ATRO is 482,265 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the last two months, one earnings estimate for ATRO has been revised upward, while none have been lowered, leading to an increase in the consensus estimate from $1.29 to $1.50 [9]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [9].

Group 1: Earnings Performance - Astronics Corporation (ATRO) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, compared to a loss of $0.09 per share a year ago, representing an earnings surprise of 76% [1] - The company posted revenues of $205.94 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.37%, and compared to year-ago revenues of $185.07 million [2] - Over the last four quarters, Astronics has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Astronics shares have increased approximately 49.4% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for assessing future stock performance [4] - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $200.73 million, and for the current fiscal year, it is $1.13 on revenues of $823.87 million [7] Group 3: Industry Context - The Aerospace - Defense Equipment industry, to which Astronics belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Astronics' stock performance [5]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $206 million, an 11% increase year over year, and at the high end of the company's range [5] - Adjusted net income rose to $17 million from $2 million last year, while adjusted EBITDA increased to $30.7 million from $17.6 million [5][12] - Adjusted EBITDA margin was approximately 15% of sales, consistent with the previous quarter [5] - Gross profit increased by 28% year over year to $60.8 million, with gross margin expanding to 29.5% from 25.7% [13] Business Line Data and Key Metrics Changes - Aerospace segment revenue reached $191.4 million, a 17% increase year over year, with adjusted operating profit of $31 million [9][17] - Test segment sales were $14.6 million, down from the previous year, resulting in an adjusted operating loss of $1.5 million due to a $1.9 million adjustment on a long-term contract [9][18] Market Data and Key Metrics Changes - First quarter bookings were strong at $280 million, yielding a book-to-bill ratio of 1.36, with a record backlog [6] - Military sales in the Aerospace segment nearly doubled, up 95%, driven by the FLRAA program [16] Company Strategy and Development Direction - The company remains focused on margin expansion, free cash flow generation, and continuous improvement [23] - There is an ongoing review of business segments to assess potential restructuring or product management strategies [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the revenue forecast for 2025, maintaining a range of $820 million to $860 million, while acknowledging potential upside and downside risks [25][26] - The company is preparing for potential tariff impacts, estimating obligations between $10 million to $20 million, and is considering various strategies to mitigate these effects [26][27] Other Important Information - Operating cash flow improved significantly to $20.6 million from $2 million in the previous year [19] - Long-term debt net of cash was reduced to $134.2 million, with total liquidity at approximately $194 million [21][22] Q&A Session Summary Question: How much mitigation can be done this year to offset the tariff impact? - Management indicated it is difficult to quantify timing without knowing the exact tariffs, but they are considering various alternatives [30][31] Question: Does the review of each business indicate potential restructuring? - Management stated the review could lead to restructuring or product management changes, but it is premature to discuss specifics [34] Question: What are the expectations regarding Boeing's production needs? - Management has not heard of major changes from Boeing and is encouraged by their production progress [37] Question: Can more detail be provided on demand growth from airlines versus OEMs? - Demand has been strong from both airlines and OEMs, with commercial transport sales being roughly 50% line fit and 50% aftermarket [45] Question: Is the $1.9 million charge in the Test segment contained? - There is potential risk associated with the charge, and management is conducting a review to assess the situation [48] Question: What is the worst-case scenario for legal fees related to the UK settlement? - The worst-case estimate for legal fees is around $7.2 million, with the overall situation being better than initially feared [50]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $206 million, an increase of 11% year over year, and at the high end of the company's range [5] - Adjusted net income rose to $17 million from $2 million last year, while adjusted EBITDA increased to $30.7 million from $17.6 million, representing about 15% of sales [5][12] - Gross profit increased by 28% year over year to $60.8 million, with gross margin expanding to 29.5% from 25.7% [12] - Adjusted operating income was $22.6 million, or 11% of sales, compared to $5.5 million and 3% in the prior year [13] Business Line Data and Key Metrics Changes - The Aerospace segment achieved record revenue of $191.4 million, up 17% year over year, with adjusted operating profit of $31 million and an operating margin of 16.2% [8][15] - The Test segment reported sales of $14.6 million, down from the previous year, with an adjusted operating loss of $1.5 million due to a $1.9 million adjustment related to a long-term contract [16][17] Market Data and Key Metrics Changes - First quarter bookings were strong at $280 million, yielding a book-to-bill ratio of 1.36, with a significant order of $57 million for the FLRAA development effort [6][7] - The backlog reached an all-time high, indicating strong future demand [6] Company Strategy and Development Direction - The company remains focused on margin expansion, free cash flow generation, and continuous improvement, with plans for capital expenditures between $35 million and $50 million for the year [21][22] - The company is evaluating its financing structure and considering value-creating initiatives, including acquisitions and share repurchases [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, particularly concerning potential tariff impacts, estimating obligations between $10 million and $20 million [24][25] - The company is maintaining its revenue forecast for 2025 at $820 million to $860 million, reflecting a 6% increase from 2024, while acknowledging both upside potential and downside risks [23][24] Other Important Information - Operating cash flow improved significantly to $20.6 million from $2 million in the prior year, driven by stronger cash earnings and efficient working capital management [18][19] - Long-term debt net of cash was reduced to $134.2 million, with total liquidity at approximately $194 million [20] Q&A Session Summary Question: How much mitigation can be done to offset the tariff impact? - Management indicated it is difficult to quantify timing without knowing the exact tariffs, but they are considering various alternatives [28][30] Question: Does the review of each business indicate restructuring or strategic changes? - Management stated it could involve any of those aspects, emphasizing the need to evaluate product lines and initiatives [32][33] Question: What are the expectations regarding Boeing's production needs? - Management has not heard of major changes from Boeing and is encouraged by their production rate progression [35] Question: Can more detail be provided on demand growth from airlines versus OEMs? - Demand has been strong from both sides, with commercial transport sales being roughly 50% line fit and 50% aftermarket [43] Question: Is the $1.9 million charge contained? - Management acknowledged potential risks and is conducting a review to assess the situation [46] Question: What is the worst-case scenario for the UK legal fees? - Management believes the worst-case scenario for legal fees is around $7.2 million, with the overall situation being better than initially feared [51][52]

Financial Performance - First quarter 2025 revenue increased by 11.3% to $205.9 million, exceeding the high end of the company's guidance range[4] - Adjusted EBITDA for the first quarter was $30.7 million, representing 14.9% of sales, a 74.4% increase compared to the prior year[11] - Net income for the first quarter was $9.5 million, or $0.26 per diluted share, a significant recovery from a net loss of $3.2 million in the prior year[10] - Gross profit for the quarter was $60.849 million, with a gross margin of 29.5%, an increase from 25.7% in the prior year[38] - Operating income improved to $13.137 million, with an operating margin of 6.4%, up from 0.9% in the same quarter last year[38] - The company reported a total segment operating profit of $20.041 million, significantly higher than $9.018 million in Q1 2024[45] - Interest expense decreased to $3.150 million from $5.759 million year-over-year, indicating improved financial management[38] - The company achieved a net income of $9.528 million, translating to a net income margin of 4.6%, compared to a net loss of $3.178 million in Q1 2024[38] - The trailing twelve months adjusted EBITDA totaled $109,580 thousand, indicating strong operational performance[69] Aerospace Segment Performance - Aerospace segment sales reached a record $191.4 million, up 17% year-over-year, driven by strong demand in the Commercial Transport and Military Aircraft markets[12] - Aerospace sales were a significant driver, contributing $191.375 million, compared to $163.638 million in the previous year, reflecting a growth of 16.9%[45] - The Aerospace segment's operating profit was $22.3 million, or 11.6% of sales, despite legal reserve adjustments related to a patent dispute[14] - The adjusted operating income for the aerospace segment was $31,015,000, with an adjusted aerospace margin of 16.2%, compared to 9.6% in Q1 2024[62] - The backlog for the aerospace segment increased to $613,903,000 as of March 29, 2025, compared to $537,563,000 at the end of Q4 2024[51] Bookings and Backlog - The company achieved record bookings of $279.7 million in the quarter, resulting in a book-to-bill ratio of 1.36:1 and a record backlog of $673.0 million[4] - Total bookings for Q1 2025 were $279,726,000, resulting in a book-to-bill ratio of 1.36, indicating strong demand[51] Cash Flow and Assets - Cash flow from operations was $20.6 million in the first quarter, reflecting improved working capital management[21] - Cash and cash equivalents increased to $24.805 million, up from $9.285 million at the end of 2024[41] - Total assets rose to $662.242 million, compared to $648.764 million at the end of the previous year[41] Guidance and Future Outlook - The company is maintaining its 2025 revenue guidance in the range of $820 million to $860 million, which would represent a 6% increase over 2024 sales[27] - Astronics Corporation is focusing on expanding its aerospace segment and improving operational efficiencies to drive future growth[63] - The company plans to enhance its market presence through strategic expansions and potential acquisitions in the aerospace sector[66] - The company is committed to maintaining a robust pipeline of new products and technologies to drive future growth[66] Segment Challenges - The Test Systems segment reported a sales decline of $6.9 million to $14.6 million, impacted by a revision of estimated costs on a long-term contract[16] - The company experienced a decline in test systems segment sales, which fell to $14,561,000, down 32.1% from $21,436,000 in Q1 2024[49]

Core Viewpoint - Astronics Corporation (ATRO) is expected to report first-quarter 2025 results on May 6, with revenue estimates indicating growth and a significant improvement in earnings compared to the previous year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $190 million, reflecting a 2.7% increase from the same quarter last year [2]. - The consensus estimate for earnings is 25 cents per share, a notable recovery from a loss of 9 cents in the prior-year quarter, with a 19.1% upward revision in the last 60 days [2]. Segment Performance - The Aerospace unit is projected to drive sales growth, with first-quarter sales estimated at $171.8 million, a 5% increase year-over-year, supported by rising demand for cabin power and in-flight entertainment [5][6]. - Conversely, the Test Systems unit is expected to see a decline in sales, estimated at $18.2 million, down 15% from the previous year due to delays in the U.S. Army's radio test program [7]. Overall Company Performance - Approximately 90% of ATRO's total revenues come from the Aerospace segment, which is anticipated to enhance overall top-line performance [8]. - The company's shares have increased by 44.3% year-to-date, outperforming the Zacks Aerospace-Defense Equipment industry and the broader market [9]. Valuation Metrics - ATRO's forward 12-month price-to-earnings (P/E) ratio is 17.31X, which is lower than the peer group's average of 23.41X, indicating a potentially attractive valuation [10]. - Despite this, industry peers like Leonardo DRS and TransDigm Group are trading at higher P/E multiples of 35.62 and 35.37, respectively [14]. Growth Catalysts and Challenges - The expansion of global commercial air traffic is a significant growth driver for ATRO, with expectations for strong revenue and earnings growth in the first quarter [16]. - The company faces challenges such as supply-chain pressures, material availability, and rising labor costs, which could impact performance [15]. Investment Considerations - Given the favorable sales and earnings estimates, a strong Zacks Rank, and solid year-to-date stock performance, ATRO may be a compelling investment opportunity ahead of its earnings report [20].

Core Viewpoint - Astronics Corporation (ATRO) has shown strong stock performance, with a 32.3% increase over the past year, outperforming both the Zacks Aerospace-Defense Equipment industry and the broader Zacks Aerospace sector [1][2]. Group 1: Stock Performance - ATRO's stock has outperformed the S&P 500's return of 8.3% during the same period [1]. - Other industry players like Leonardo DRS and Curtiss-Wright Corp. have also performed well, with stock increases of 67.5% and 31.7%, respectively [2]. Group 2: Drivers of Growth - Significant contracts, such as the U.S. Army Future Long Range Assault Aircraft contract, are expected to contribute approximately $60-$65 million in revenues over the next few years [4]. - A contract secured in April 2025 to supply the Frequency Converter Unit for NASA and Boeing's TTBW X-66 aircraft demonstrator will further support revenue growth [5]. - The company reported a solid 15% year-over-year sales increase in 2024, indicating strong operational performance [6]. Group 3: Financial Position - As of December 2024, ATRO had cash and cash equivalents of $18 million and no current debt, with long-term debt totaling $169 million [7]. - The company is positioned to invest in new product innovation, which is crucial for growth in the aerospace sector [7]. Group 4: Future Outlook - The Zacks Consensus Estimate predicts a 3.6% year-over-year growth in sales for 2025 and an 8.2% increase for 2026 [11]. - Earnings estimates show significant growth potential, with a projected year-over-year increase of 377.78% for the current quarter and 53.10% for the next year [13]. Group 5: Valuation - ATRO's forward 12-month price-to-earnings (P/E) ratio is 16.63X, which is below the peer group average of 23.42X, indicating a potentially attractive investment opportunity [14].

Company Overview - Astronics Corporation (ATRO) is expected to report a year-over-year increase in earnings, with a consensus estimate of $0.25 per share, reflecting a significant change of +377.8% [3] - Revenues are anticipated to reach $190.04 million, which is a 2.7% increase from the previous year [3] Earnings Expectations - The upcoming earnings report is scheduled for May 6, and the stock price may react positively if the actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 16.13% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Astronics matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11] - Despite a Zacks Rank of 1 (Strong Buy), the lack of a positive Earnings ESP makes it challenging to predict a beat on the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Astronics exceeded the expected earnings of $0.21 per share by delivering $0.48, resulting in a surprise of +128.57% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Context - In the Zacks Aerospace - Defense Equipment industry, BWX Technologies (BWXT) is expected to report earnings of $0.73 per share, indicating a year-over-year decline of -4% [17] - BWX's revenue is projected to be $657.18 million, reflecting an 8.8% increase from the previous year [17] - The consensus EPS estimate for BWX has been revised down by 4.2% in the last 30 days, resulting in an Earnings ESP of -0.99% [18]

As global air travel rebounds and defense modernization accelerates, aerospace technology stocks are drawing fresh investor interest. Two stocks that stand out to gain from this trend are Astronics Corporation (ATRO) and Heico Corporation (HEI) . The sector’s focus on mission-critical systems, next-gen avionics, and advanced connectivity solutions is fueling long-term growth, especially as airlines and militaries upgrade their fleets.Astronics specializes in innovative electrical power systems, lighting, an ...

Strong global air passenger traffic projections present attractive growth prospects for stocks in the Zacks Aerospace-Defense Equipment industry. However, ongoing supply-chain disruptions in the commercial aerospace sector may dampen demand for aircraft components, potentially weighing on profitability and cash flow. Despite these challenges, the industry is likely to benefit from strategic mergers and acquisitions, which can drive operational efficiencies, expand market reach and broaden product portfolios ...