As the Q1 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 Moog (NYSE:MOG.A) 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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, aerospace stocks have held steady amidst all this with share prices up 2.8% 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 applications
Moog 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 19.4% since reporting and currently trades at $187.75.
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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 and operating margin estimates.
The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $62.89.
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 and 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.
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 $2.05 billion, up 17.3% year on year. This print topped analysts’ expectations by 1.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ organic revenue estimates.
The stock is up 9.8% since reporting and currently trades at $1,328.
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 $500.4 million, up 10.1% year on year. This print surpassed analysts’ expectations by 3%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ operating margin estimates but underwhelming earnings guidance for the full year.
The stock is down 10.3% since reporting and currently trades at $60.95.
This content was originally published on Stock Story
