Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Ducommun (NYSE:DCO) and the best and worst performers in the aerospace industry.
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 13 aerospace stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, aerospace stocks have held steady amidst all this with share prices up 3.2% on average since the latest earnings results.
Best Q2: Ducommun (NYSE:DCO) California’s oldest company, Ducommun (NYSE:DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Ducommun reported revenues of $197 million, up 5.2% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ earnings estimates.
“Q2 was another outstanding quarter for DCO as we grew our topline both year-over-year and sequentially, led by strength in both of our Commercial Aerospace and Military segments along with strong quarterly gross margins and Adjusted EBITDA margins,” said Stephen G. Oswald, chairman, president and chief executive officer.
Interestingly, the stock is up 8.8% since reporting and currently trades at $64.52.
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Howmet (NYSE:HWM) Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Howmet reported revenues of $1.88 billion, up 14.1% year on year, outperforming analysts’ expectations by 2.5%. It was a very strong quarter for the company with a solid beat of analysts’ Fastening systems revenue estimates and optimistic EBITDA guidance for the full year.
The market seems happy with the results as the stock is up 15.7% since reporting. It currently trades at $95.85.
Weakest Q2: 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 $77.1 million, up 11.2% year on year, falling short of analysts’ expectations by 12.7%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
AerSale posted the weakest performance against analyst estimates in the group. As expected, the stock is down 7.5% since the results and currently trades at $5.15.
Boeing (NYSE:BA) One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Boeing reported revenues of $16.87 billion, down 14.6% year on year, falling short of analysts’ expectations by 2.8%. Taking a step back, it was a weak quarter for the company with a miss of analysts’ earnings and volume estimates.
Boeing had the slowest revenue growth among its peers. The stock is down 5.3% since reporting and currently trades at $177.
Woodward (NASDAQ:WWD) Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
Woodward reported revenues of $847.7 million, up 5.9% year on year, in line with analysts’ expectations. Taking a step back, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ organic revenue estimates.
The stock is down 15.5% since reporting and currently trades at $154.92.
This content was originally published on Stock Story
