Let’s dig into the relative performance of AerSale (NASDAQ: ASLE) and its peers as we unravel the now-completed Q2 aerospace earnings season.
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 13 aerospace stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.8% below.
While some aerospace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.
Best 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 $107.4 million, up 39.3% year on year. This print exceeded analysts’ expectations by 24.4%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
AerSale scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 33.1% since reporting and currently trades at $8.21.
Is now the time to buy AerSale? Access our full analysis of the earnings results here, it’s free.
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 $754.5 million, up 14.9% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $76.24.
Is now the time to buy AAR? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Astronics (NASDAQ: ATRO)
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Astronics reported revenues of $204.7 million, up 3.3% year on year, falling short of analysts’ expectations by 1.7%. It was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 15.5% since the results and currently trades at $29.90.
Read our full analysis of Astronics’s results here.
Woodward (NASDAQ: WWD)
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Woodward reported revenues of $915.4 million, up 8% year on year. This result surpassed analysts’ expectations by 3.4%. It was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and full-year EPS guidance exceeding analysts’ expectations.
The stock is down 3.4% since reporting and currently trades at $249.73.
Read our full, actionable report on Woodward here, it’s free.
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 $489.9 million, down 2.1% year on year. This number beat analysts’ expectations by 3%. More broadly, it was a satisfactory quarter as it also logged full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ EBITDA estimates.
The stock is down 3.3% since reporting and currently trades at $60.32.
Read our full, actionable report on Hexcel here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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