The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Moog (NYSE:MOG.A) and the rest of the aerospace stocks fared in Q1.
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 2.8% above.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing 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.
Thankfully, aerospace stocks have been resilient with share prices up 5.3% 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 significant improvements in growth and profitability.
Interestingly, the stock is up 27.9% since reporting and currently trades at $201.20.
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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 estimates.
The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $64.73.
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’ earnings estimates.
AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.1% since the results and currently trades at $4.84.
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. It was a satisfactory quarter as it also put up a solid beat of analysts’ operating margin estimates.
The stock is down 4.4% since reporting and currently trades at $87.96.
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 number met analysts’ expectations. Aside from that, it was a slower quarter as it logged a miss of analysts’ organic revenue estimates.
HEICO pulled off the fastest revenue growth among its peers. The stock is up 7.6% since reporting and currently trades at $264.72.
This content was originally published on Stock Story
