Astronics (US:ATRO) ZACKS·2025-12-02 15:55Core Insights - Astronics Corporation (ATRO) shares have increased by 44.5% over the past three months, outperforming the Zacks Aerospace-Defense Equipment industry's decline of 1.5% and the broader Zacks Aerospace sector's decline of 2.3% [1] - The company's strong performance is attributed to robust quarterly results and strategic acquisitions, which have bolstered investor confidence [4][8] Financial Performance - In Q3 2025, Astronics reported a revenue growth of 3.8% and a 44% increase in net adjusted earnings compared to the same period last year [4] - The Aerospace unit recorded sales of $192.7 million, an increase of nearly 8.5% year-over-year, driven by demand for cabin power products and military aircraft sales [5] - The Zacks Consensus Estimate for 2025 sales indicates a year-over-year growth of 7.7%, while the estimate for 2026 sales suggests an improvement of 14.5% [10] - The Zacks Consensus Estimate for 2025 earnings implies a year-over-year growth of 63.3%, with a 36.5% increase expected for 2026 [10] Strategic Acquisitions - In October 2025, Astronics expanded its aviation business by acquiring Buhler Motor Aviation (BMA), enhancing its seat actuation capabilities and technical strength [6][9] - The acquisition is expected to support improved seat actuation solutions and future innovations, strengthening Astronics' position in the commercial aerospace sector [9] Valuation and Market Position - ATRO's forward 12-month price-to-sales (P/S) ratio is 1.95X, significantly lower than the industry average of 9.29X, indicating a discounted valuation [14] - Competitors like Kratos and Curtiss-Wright are trading at higher P/S ratios of 7.85X and 5.51X, respectively [15] Liquidity and Efficiency - Astronics has a current ratio of 2.87, indicating sufficient capital to meet short-term debt obligations [16] - The company's Return on Invested Capital (ROIC) stands at 15.77%, well above the industry average of 1.56%, reflecting strong returns on investments [17][18]