The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how aerospace stocks fared in Q1, starting with Moog (NYSE:MOG.A).
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 12 aerospace stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 2.8% above.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Luckily, aerospace stocks have performed well with share prices up 11% on average since the latest earnings results.
Best Q1: Moog (NYSE:MOG.A)
Responsible for the flight control actuation system integrated in the B-2 stealth bomber, Moog (NYSE:MOG.A) provides precision motion control solutions used in aerospace and defense applicationsMoog reported revenues of $930.3 million, up 11.2% year on year. This print exceeded analysts’ expectations by 6.5%. Overall, it was an incredible quarter for the company,with revenue and operating margin exceeding analysts' estimates.
Interestingly, the stock is up 24.6% since reporting and currently trades at $196.03.
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Curtiss-Wright (NYSE:CW)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.Curtiss-Wright reported revenues of $784.8 million, up 11.4% year on year, outperforming analysts’ expectations by 6.7%. The business had an exceptional quarter with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 41.4% since reporting. It currently trades at $378.57.
Weakest Q1: 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 disappointing quarter as it posted a miss of analysts’ operating margin estimates and a miss of analysts’ earnings estimates.
AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.9% since the results and currently trades at $5.41.
HEICO (NYSE:HEI)
Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.HEICO reported revenues of $992.2 million, up 37.3% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it recorded a miss of analysts’ organic revenue estimates.
HEICO scored the fastest revenue growth among its peers. The stock is up 7.7% since reporting and currently trades at $264.97.
Astronics (NASDAQ:ATRO)
Integrating power outlets into many Boeing (NYSE:BA) aircraft, Astronics (NASDAQ:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.Astronics reported revenues of $198.1 million, up 13.6% year on year. This number topped analysts’ expectations by 3.7%. Overall, it was a very strong quarter as it also produced full-year revenue guidance exceeding analysts’ expectations.
The stock is down 3.6% since reporting and currently trades at $21.04.
This content was originally published on Stock Story
