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 Q2, starting with Textron (NYSE:TXT).
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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 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 average share prices relatively unchanged since the latest earnings results.
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 $3.53 billion, up 3% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ operating margin estimates.
"In the quarter, our team delivered higher revenue, earnings per share, and cash flow," said Textron Chairman and CEO Scott C. Donnelly.
Unsurprisingly, the stock is down 5.6% since reporting and currently trades at $86.88.
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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, outperforming analysts’ expectations by 1.1%. The business had an exceptional quarter with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $62.89.
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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.9% since the results and currently trades at $5.13.
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. This print beat analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ operating margin estimates.
The stock is up 14.2% since reporting and currently trades at $94.64.
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. This number beat analysts’ expectations by 6.7%. It was a very strong quarter as it also put up a solid beat of analysts’ earnings estimates.
The stock is up 11.3% since reporting and currently trades at $298.
This content was originally published on Stock Story
