As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace industry, including Astronics (NASDAQ: ATRO) and its peers.
Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.
The 15 aerospace stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.7% below.
Thankfully, share prices of the companies have been resilient as they are up 8.6% on average since the latest earnings results.
Astronics (NASDAQ: ATRO)
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Astronics reported revenues of $211.4 million, up 3.8% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 13.6% since reporting and currently trades at $54.50.
Best Q3: AAR (NYSE: AIR)
The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services
AAR reported revenues of $739.6 million, up 11.8% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.
AAR pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.1% since reporting. It currently trades at $84.53.
Is now the time to buy AAR? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: AerSale (NASDAQ: ASLE)
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.
AerSale reported revenues of $71.19 million, down 13.9% year on year, falling short of analysts’ expectations by 30.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.
AerSale delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $7.06.
Read our full analysis of AerSale’s results here.
Hexcel (NYSE: HXL)
Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.
Hexcel reported revenues of $456.2 million, flat year on year. This print beat analysts’ expectations by 3%. However, it was a slower quarter as it produced full-year EPS and revenue guidance slightly missing analysts’ expectations.
The stock is up 18.3% since reporting and currently trades at $75.43.
Read our full, actionable report on Hexcel here, it’s free for active Edge members.
Redwire (NYSE: RDW)
Based in Jacksonville, Florida, Redwire (NYSE: RDW) is a provider of systems and components used in space infrastructure.
Redwire reported revenues of $103.4 million, up 50.7% year on year. This result came in 22.4% below analysts' expectations. Overall, it was a disappointing quarter as it also logged full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.
Redwire achieved the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 4.9% since reporting and currently trades at $7.03.
Read our full, actionable report on Redwire here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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