Core Insights - The investment approach focuses on fundamental analysis of stocks, emphasizing companies with a strong competitive moat, consistent growth in free cash flow, and robust financial performance [1] - The philosophy is rooted in long-term investing, avoiding short-term trading tactics and options, which is believed to unlock value over time [1] - The aim is to provide insightful, actionable advice by uncovering undervalued stocks poised for growth and identifying overvalued stocks to be cautious of [1] Company and Industry Analysis - The analyst has a background in business and economics, which supports their investment analysis and strategies [1] - The contribution to Seeking Alpha is seen as a way to engage with a community that values deep analytical insights into the market [1] - The article reflects a commitment to refining investment strategies in the evolving investment landscape [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $201.4 million, a 2.6% increase from $196.3 million in Q3 2023, marking the first time revenue exceeded $200 million [10][26] - Gross profit was $52.7 million, representing a gross margin of 26.2%, up from 22.7% in the prior year [15][27] - Adjusted EBITDA reached $31.9 million, expanding to 15.8%, which is 90 basis points above the prior year [18][30] - GAAP diluted EPS was $0.67, compared to $0.22 in Q3 2023, while adjusted diluted EPS was $0.99, up from $0.70 [18][31] - Consolidated backlog was $1.044 billion, decreasing $24 million sequentially but increasing over $85 million year-over-year [19] Business Line Data and Key Metrics Changes - Military and space revenues grew to $111 million, a 6% increase year-over-year, driven by radar and electronic warfare programs [10][22] - Commercial aerospace revenue increased by 3% year-over-year to $85 million, with significant growth in the A220 and A320 programs [12][24] - Structural Systems segment revenue was $86 million, slightly up from $85.5 million, while Electronic Systems segment revenue rose to $115.4 million from $110.7 million [32][34] Market Data and Key Metrics Changes - Defense backlog increased by $97 million year-over-year to $592 million, with new orders for various platforms [20][23] - Commercial aerospace backlog decreased sequentially by $20 million but was up $8 million year-over-year, indicating resilience despite market challenges [21][24] Company Strategy and Development Direction - The company is executing its Vision 2027 strategy, focusing on increasing revenue from engineered products and aftermarket content, consolidating facilities, and pursuing targeted acquisitions [9][10] - The strategy aims for 18% EBITDA margins and 25% or more of revenues from engineered products and aftermarket by 2027 [41][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in military and space sectors and anticipated recovery in commercial aerospace, particularly with Boeing [11][22] - The company is well-positioned for recovery in 2025 and 2026, especially for the MAX and 787 programs [21][22] - Management highlighted the importance of strategic pricing initiatives and productivity improvements in driving margin expansion [15][41] Other Important Information - The company closed its Monrovia facility and reduced operations at Berryville, leading to cost savings that are expected to increase as production ramps up in Guaymas, Mexico [16][38] - The restructuring program is expected to generate annual savings of $11 million to $13 million upon completion [38] Q&A Session Summary Question: What is the company doing new for Northrop Grumman? - The company is involved in airborne surveillance and electronics, with significant orders from Northrop Grumman, indicating a strong partnership [43][44] Question: What is the current status of the 787 program? - The company expects a double-digit increase in content per aircraft due to a share shift from a competitor, with more details to be provided in the next call [45] Question: How much more work can the company take on without ramping up CapEx? - The company believes it has sufficient capacity in its structures business without significant capital investments, maintaining a CapEx outlook of around $20 million [50][51] Question: What is the current environment for M&A activity? - The company is actively looking for acquisition opportunities and has seen increased activity in recent months, with a focus on making the right selections [53][54] Question: What is the outlook for revenue guidance and margins in Q4? - The company anticipates a sequential decline in revenue due to the Boeing strike and program movements but expects margins to remain stable [57][60]

分组1 - Ducommun reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing an increase from $0.70 per share a year ago, resulting in an earnings surprise of 52.31% [1] - The company achieved revenues of $201.41 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.85% and increasing from $196.25 million year-over-year [2] - Ducommun has outperformed the S&P 500, with shares rising about 26.1% since the beginning of the year compared to the S&P 500's gain of 24.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $201.23 million, and for the current fiscal year, it is $2.97 on revenues of $781.18 million [7] - The Zacks Industry Rank for Aerospace - Defense Equipment is in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

600 Anton Boulevard I Suite 1100 Costa Mesa, CA 92626-7100 657.335.3665 www.ducommun.com EXHIBIT 99.1 NEWS RELEASE Ducommun Incorporated Reports Third Quarter 2024 Results Record Quarterly Revenue Exceeding $200M; Strong Gross Margin Growth COSTA MESA, CALIFORNIA (November 7, 2024) – Ducommun Incorporated (NYSE: DCO) ("Ducommun" or the "Company") today reported results for its third quarter ended September 28, 2024. Third Quarter 2024 Recap • Net revenue was $201.4 million, an increase of 2.6% over Q3 2023 ...

New Directors Provide Operational and Financial Expertise in the A&D Sector and Have Strong Track Records of Creating Value for Shareholders The Ducommun Board Has Now Added 5 New Directors in the Past 4 Years Q3 2024 Results Reaffirm Strong Momentum on Ducommun’s VISION 2027 Strategy COSTA MESA, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”), a global supplier of value-added innovative electronic and structural products and manufacturing solutions ...

COSTA MESA, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its third quarter ended September 28, 2024. Third Quarter 2024 Recap Net revenue was $201.4 million, an increase of 2.6% over Q3 2023Net income of $10.1 million (increase of 216% year-over-year), or $0.67 per diluted share, or 5.0% of revenue, up 340 bps year-over-yearNon-GAAP adjusted net income of $14.8 million (increase of 44% year-over-year), or $0.99 per dilut ...

COSTA MESA, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today announced that it plans to release the Company's 2024 third quarter financial results on November 7, 2024, prior to the stock market opening. Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman Mookerji, the Company’s senior vice president and chief financial officer, will host a call that day at 10:00 a.m. PT (1:00 p.m. ET) to review these resul ...

COSTA MESA, Calif., Oct. 18, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) ("Ducommun" or the "Company"), a global supplier of innovative electronic and structural solutions for the aerospace & defense industry, proudly celebrated its 175th anniversary as the oldest continuously operating company in California by ringing the Closing Bell at the New York Stock Exchange on Friday, October 11, 2024. Since taking over in January of 2017, Ducommun's current management team led the Company to a recor ...

Company Overview - Ducommun (NYSE: DCO) specializes in engineering and manufacturing solutions for high-performance products and critical applications, primarily serving the industrial, medical, aerospace, and defense sectors [1]. Financial Performance - For its most recent 2Q24, Ducommun reported revenue growth driven by both the commercial aerospace and defense sectors [1].

Group 1 - Ducommun Incorporated will participate in the RBC Capital Markets Global Industrials Conference on September 24, 2024, with CEO Stephen G. Oswald representing the company [1] - The company specializes in delivering innovative products and manufacturing solutions primarily in the aerospace, defense, and industrial markets [2] - Founded in 1849, Ducommun focuses on two core areas: Electronic Systems and Structural Systems, producing complex products for commercial aircraft, military, and space programs [2] Group 2 - Institutional investors can arrange one-on-one meetings with Ducommun's management through RBC Capital Markets [1] - The company aims to provide value-added solutions to its customers, enhancing its position in the competitive aerospace and defense sectors [2]