Q1 Earnings Highlights: Moog (NYSE:MOG.A) Vs The Rest Of The Aerospace Stocks

December 19, 2024 at 04:05 AM EST

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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 15 aerospace stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 0.5% 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 4.2% on average since the latest earnings results.

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 applications

Moog 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 an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Moog achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 19.3% since reporting and currently trades at $187.71.

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

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.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.9% since reporting. It currently trades at $62.14.

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

Weakest Q1: 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 11.7% since the results and currently trades at $76.71.

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 result surpassed analysts’ expectations by 0.6%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.

TransDigm had the weakest full-year guidance update among its peers. The stock is down 10.1% since reporting and currently trades at $1,242.

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

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 number beat analysts’ expectations by 2.4%. It was a stunning quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Rocket Lab delivered the fastest revenue growth among its peers. The stock is up 62.3% since reporting and currently trades at $23.85.

Read our full, actionable report on Rocket Lab 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 Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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