Wrapping up Q2 earnings, we look at the numbers and key takeaways for the aerospace and defense stocks, including Cadre (NYSE:CDRE) and its peers.
Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.
The 32 aerospace and defense stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 1.9% below.
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. Thankfully, aerospace and defense stocks have been resilient with share prices up 8.6% on average since the latest earnings results.
Cadre (NYSE:CDRE) Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Cadre reported revenues of $144.3 million, up 19.2% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin estimates and an impressive beat of analysts’ Products revenue estimates.
“Cadre delivered strong second quarter results, driven by outstanding execution in line with our strategic objectives, as well as significant demand for our mission-critical safety equipment,” said Warren Kanders, CEO and Chairman.
Interestingly, the stock is up 5.6% since reporting and currently trades at $35.77.
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Best Q2: Mercury Systems (NASDAQ:MRCY) Founded in 1981, Mercury Systems (NASDAQ:MRCY) specializes in providing processing subsystems and components for primarily defense applications.
Mercury Systems reported revenues of $248.6 million, down 1.8% year on year, outperforming analysts’ expectations by 7.8%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue and earnings estimates.
The market seems happy with the results as the stock is up 11.9% since reporting. It currently trades at $38.05.
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 6.8% since the results and currently trades at $5.19.
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 print topped analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations.
Astronics delivered the highest full-year guidance raise among its peers. The stock is down 11.8% since reporting and currently trades at $19.24.
Byrna (NASDAQ:BYRN) Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Byrna reported revenues of $20.27 million, up 76.1% year on year. This number met analysts’ expectations. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ earnings estimates.
Byrna scored the fastest revenue growth among its peers. The stock is up 50.2% since reporting and currently trades at $15.50.
This content was originally published on Stock Story
