Reflecting On Aerospace Stocks’ Q3 Earnings: Rocket Lab (NASDAQ:RKLB)

November 21, 2024 at 04:14 AM EST

RKLB Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at aerospace stocks, starting with Rocket Lab (NASDAQ: RKLB).

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 12 aerospace stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2% above.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Rocket Lab (NASDAQ: RKLB)

Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ: RKLB) offers rockets designed for launching small satellites.

Rocket Lab reported revenues of $104.8 million, up 54.9% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was an exceptional quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Rocket Lab founder and CEO, Sir Peter Beck, said: “In the third quarter 2024 we once again executed against our end-to-end space strategy with successes and key achievements reached across small and medium launch, as well as space systems.”

Rocket Lab achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 39.9% since reporting and currently trades at $20.51.

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

Best Q3: 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 $201.4 million, up 2.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.02.

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

Weakest Q3: 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 $3.43 billion, up 2.5% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 5.6% since the results and currently trades at $82.02.

Read our full analysis of Textron’s results here.

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 $2.19 billion, up 18% year on year. This print topped analysts’ expectations by 0.6%. Aside from that, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations significantly.

TransDigm had the weakest full-year guidance update among its peers. The stock is down 6.4% since reporting and currently trades at $1,293.

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

Redwire (NYSE: RDW)

Based in Jacksonville, Florida, Redwire (NYSE: RDW) is a provider of systems and components used in space infrastructure.

Redwire reported revenues of $68.64 million, up 9.6% year on year. This number lagged analysts' expectations by 2.8%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ EBITDA and EPS estimates.

The stock is up 38.4% since reporting and currently trades at $11.90.

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

Market Update

In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

About Us

About Cabling Installation & Maintenance

Contact Cabling Installation & Maintenance

Editorial

Advertising and Sponsorship Sales

Subscriptions and Memberships

Feedback/Problems