As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the aerospace industry, including HEICO (NYSE: HEI) 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 14 aerospace stocks we track reported a mixed Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.9% since the latest earnings results.

Best Q4: 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 $1.03 billion, up 14.9% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.

The stock is up 6.2% since reporting and currently trades at $241.90.

We think HEICO is a good business, but is it a buy today? Read our full report here, it’s free.

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 $94.74 million, flat year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.

The stock is down 6.6% since reporting. It currently trades at $6.61.

Is now the time to buy AerSale? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Boeing (NYSE: BA)

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Boeing reported revenues of $15.24 billion, down 30.8% year on year, falling short of analysts’ expectations by 6.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Boeing delivered the slowest revenue growth in the group. As expected, the stock is down 19% since the results and currently trades at $141.95.

Read our full analysis of Boeing’s results here.

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 $473.8 million, up 3.6% year on year. This print was in line with analysts’ expectations. Aside from that, it was a softer quarter as it logged full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.

Hexcel had the weakest full-year guidance update among its peers. The stock is down 27.5% since reporting and currently trades at $49.66.

Read our full, actionable report on Hexcel here, it’s free.

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 $2.01 billion, up 12.1% year on year. This number missed analysts’ expectations by 1.5%. It was a slower quarter as it also recorded a slight miss of analysts’ organic revenue estimates and full-year revenue guidance slightly missing analysts’ expectations.

The stock is down 6.2% since reporting and currently trades at $1,271.

Read our full, actionable report on TransDigm here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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