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 AAR (NYSE:AIR).
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 14 aerospace stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 4%. while next quarter's revenue guidance was 1.8% above consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but aerospace stocks have performed well, with the share prices up 13% on average since the previous earnings results.
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 $567.3 million, up 8.9% year on year, in line with analysts' expectations. It was an ok quarter for the company with a decent beat of analysts' earnings estimates.
"During the quarter, we drove 18% sales growth in our commercial business capitalizing on the continued strong demand for both our parts supply activities and MRO services. We expect commercial demand to remain elevated as the life and high utilization of current generation aircraft continue to extend," said John M. Holmes, Chairman, President and Chief Executive Officer of AAR CORP.
The stock is up 14% since reporting and currently trades at $72.89.
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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 applications.
Moog reported revenues of $930.3 million, up 11.2% year on year, outperforming analysts' expectations by 6.5%. It was an incredible quarter for the company, with revenue exceeding analysts' estimates.
The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $172.33.
Weakest Q1: Textron (NYSE:TXT) Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.14 billion, up 3.7% year on year, falling short of analysts' expectations by 4%. It was a weak quarter for the company with a miss of analysts' organic revenue and earnings estimates.
Textron posted the weakest performance against analyst estimates in the group. As expected, the stock is down 8.2% since the results and currently trades at $86.31.
TransDigm (NYSE:TDG) Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation.
TransDigm reported revenues of $1.92 billion, up 20.5% year on year, surpassing analysts' expectations by 2%. Looking more broadly, it was a solid quarter for the company with a decent beat of analysts' earnings and organic revenue estimates.
The stock is down 2.3% since reporting and currently trades at $1,270.
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 $713.2 million, up 13% year on year, surpassing analysts' expectations by 7.4%. Looking more broadly, it was a very strong quarter for the company with a solid beat of analysts' earnings estimates and full-year revenue guidance slightly topping analysts' expectations.
The stock is up 9.7% since reporting and currently trades at $281.58.
This content was originally published on Stock Story
