Core Viewpoint - Astronics Corporation (ATRO) is expected to report second-quarter 2025 results on August 6, with projected revenues of $207.1 million, reflecting a 4.5% year-over-year growth, and earnings estimated at 33 cents per share, indicating a significant 725% increase from the previous year's 4 cents [1][4]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $207.1 million, which represents a 4.5% increase from the same quarter last year [1][4]. - The earnings consensus is set at 33 cents per share, suggesting a substantial improvement of 725% from the prior year's figure of 4 cents [1][4]. Segment Performance - The Aerospace segment is anticipated to drive sales growth, with expected sales of $190.2 million, up 7.5% year-over-year, due to increased demand for cabin power, in-flight entertainment, and military aircraft products [5][6]. - The Test Systems unit is projected to see a decline in sales, estimated at $16.9 million, down 20% from the previous year, attributed to delays and cost challenges [7]. Historical Performance - Astronics has a strong earnings surprise history, beating the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 55.64% [2][3]. Stock Performance and Valuation - ATRO's stock has increased by 84% over the past six months, outperforming the Zacks Aerospace-Defense Equipment industry's gain of 20.5% and the broader sector's rise of 19% [10]. - The forward 12-month price-to-earnings (P/E) ratio for ATRO is 20.21X, which is significantly lower than the peer group's average of 49.78X, indicating a more attractive valuation relative to expected earnings growth [11][14]. Industry Context - The aerospace and defense industry presents substantial growth opportunities, driven by expanding commercial air traffic and a solid presence in the defense sector, which provides a diversified cushion against crises [16]. - However, challenges such as supply chain pressures, raw material costs, and labor availability persist, which could impact performance [15][17].
Should You Buy, Hold or Sell ATRO Stock Ahead of Q2 Earnings Release?