Astronics (US:ATRO) ZACKS·2026-01-09 18:35Core Insights - Astronics Corporation (ATRO) stock has increased by 25.5% in the past month, outperforming the Zacks Aerospace-Defense Equipment industry's growth of 14% and the broader Zacks Aerospace sector's return of 6.9% [1] - Other industry players like Kratos Defense & Security Solutions (KTOS) and Rocket Lab USA, Inc. (RKLB) have also shown strong performance, with KTOS and RKLB shares rising by 35.5% and 44.3%, respectively [2] Company Performance - ATRO's recent gains may attract investor interest, but it is essential to evaluate whether the company's fundamentals can support long-term growth or if the recent rise is temporary [3] - The company has reported preliminary fourth-quarter revenues of $236-$239 million, exceeding guidance, and full-year revenues of approximately $860 million, indicating solid year-over-year growth [5] - Preliminary bookings for the quarter were around $257 million, with full-year orders totaling approximately $924 million [8] Growth Prospects - The Zacks Consensus Estimate for 2026 sales suggests a year-over-year growth of 14.5% [9] - The Zacks Consensus Estimate for 2026 earnings indicates a year-over-year growth of 35% [10] - The preliminary revenue outlook for 2026 is projected at $950-$990 million, driven by sustained defense investments and ongoing airline spending on aircraft upgrades [8] Valuation and Financial Metrics - ATRO's forward 12-month price-to-sales (P/S) ratio is 2.36X, significantly lower than the industry average of 12.81X, indicating a discounted valuation [13] - The company has a current ratio of 2.87, suggesting sufficient capital to meet short-term debt obligations [15] - ATRO's Return on Invested Capital (ROIC) stands at 15.77%, well above the industry average of 3.30%, reflecting efficient capital use [17]