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 ...

Astronics Corporation (ATRO) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to loss of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -76.47%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced a loss of $0.09, delivering a surprise of -280%.Over the last four quarters, the company ...

Financial Performance - Sales grew 14% to $198.1 million in Q2 2024, compared to $174.5 million in Q2 2023[2] - Operating income increased to $7.6 million, or 3.8% of sales, up from $2.4 million, or 1.4% of sales, in the prior year[6] - Net income for the quarter was $1.5 million, or $0.04 per diluted share, compared to a net loss of $12.0 million, or $0.37 per diluted share, in the prior year[8] - Adjusted EBITDA grew 28% to $20.2 million, or 10.2% of sales, compared to $15.8 million, or 9.1% of sales, in the prior year[6] - Gross profit for Q2 2024 was $41.4 million, resulting in a gross margin of 20.9%, compared to 18.7% in Q2 2023[30] - Net income for Q2 2024 was $1.5 million, a significant improvement from a net loss of $12.0 million in Q2 2023[34] - Adjusted EBITDA for Q2 2024 was $20.2 million, with an adjusted EBITDA margin of 10.2%, up from 9.1% in Q2 2023[34] - Operating income for Q2 2024 was $7.6 million, leading to an operating margin of 3.8%, compared to 1.4% in Q2 2023[30] - The company reported a basic earnings per share of $0.04 for Q2 2024, compared to a loss of $0.37 per share in Q2 2023[30] - Astronics Corporation reported a net loss of $1,645,000 for the six months ended June 29, 2024, compared to a net loss of $16,414,000 for the same period in the previous year[39] - Cash flows from operating activities showed a net cash used of $4,223,000 for the six months ended June 29, 2024, significantly improved from $21,151,000 used in the same period last year[39] Sales and Backlog - Bookings in the quarter were $219.0 million, resulting in a record backlog of $633.4 million with a book-to-bill ratio of 1.11x[2] - Backlog at the end of Q2 2024 was a record $633.4 million, with approximately $402.3 million expected to ship in 2024[21] - Total consolidated sales for the three months ended June 29, 2024, were $198,114,000, representing a 13.6% increase from $174,454,000 in the same period last year[42] - Aerospace segment sales increased by 11.7% to $176,943,000 for the three months ended June 29, 2024, compared to $158,382,000 for the same period in 2023[46] - The military aircraft market saw a significant sales increase of 82.4% to $24,781,000 for the three months ended June 29, 2024, compared to $13,584,000 in the same period last year[45] - Total bookings for Q3 2023 were $176.0 million, with a book-to-bill ratio of 1.08 for Aerospace[49] - Total backlog as of Q3 2023 was $604.3 million, with Aerospace backlog at $513.9 million[49] - The backlog for Test Systems decreased to $90.4 million in Q3 2023[49] Segment Performance - Aerospace segment sales increased 11.7% to $176.9 million, driven by a 14.6% increase in Commercial Transport sales[10] - Test Systems segment sales were $21.2 million, up $5.1 million, primarily due to the U.S. Army TS-4549/T contract[12] - The operating profit for the Aerospace segment was $19,280,000, with a margin of 10.9%, up from $13,719,000 and a margin of 8.7% in the prior year[42] - The Test Systems segment reported sales of $21,171,000 for the three months ended June 29, 2024, a 31.7% increase from $16,072,000 in the same period last year[46] Guidance and Future Outlook - The company raised its 2024 revenue guidance to $780 million to $800 million, representing a 15% increase over 2023 sales[21] - The company expects continued growth in the aerospace sector, driven by increased demand in commercial transport and military aircraft markets[41] - The company continues to focus on improving operational efficiency and expanding its market presence through new product development and strategic initiatives[28] Capital Expenditures and Debt - Capital expenditures in Q2 2024 were $1.8 million, with net debt increasing to $174.0 million from $161.2 million at the end of 2023[18] - Capital expenditures for Q2 2024 were $1.8 million, down from $2.2 million in Q2 2023[30] - Long-term debt increased to $172.6 million as of June 29, 2024, compared to $159.2 million at the end of 2023[36] - Capital expenditures for the six months ended June 29, 2024, were $3,394,000, compared to $3,806,000 in the same period last year[39] Assets and Cash Position - Total assets as of June 29, 2024, were $644.9 million, an increase from $633.8 million at the end of 2023[36] - The company had cash and cash equivalents of $4,392,000 at the end of the period, slightly up from $4,294,000 at the end of the previous year[39]