The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how aerospace stocks fared in Q2, starting with Moog (NYSE: MOG.A).
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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 0.8% below.
In light of this news, share prices of the companies have held steady as they are up 3.9% 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 $971.4 million, up 7.4% year on year. This print exceeded analysts’ expectations by 5.9%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates.
"We have just delivered another quarter of record financial results, reflective of our unrelenting focus on driving improved business performance," said Pat Roche, CEO.
Interestingly, the stock is up 1.7% since reporting and currently trades at $208.27.
Is now the time to buy Moog? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, outperforming analysts’ expectations by 24.4%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
AerSale scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 27.7% since reporting. It currently trades at $7.88.
Is now the time to buy AerSale? Access our full analysis of the earnings results here, it’s free for active Edge members.
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.
Interestingly, the stock is up 34.2% since the results and currently trades at $47.47.
Read our full analysis of Astronics’s results here.
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 $202.3 million, up 2.7% year on year. This result beat analysts’ expectations by 1.3%. It was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 3.4% since reporting and currently trades at $94.80.
Read our full, actionable report on Ducommun here, it’s free for active Edge members.
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 $3.72 billion, up 5.4% year on year. This print surpassed analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA and organic revenue estimates.
The stock is flat since reporting and currently trades at $86.85.
Read our full, actionable report on Textron here, it’s free for active Edge members.
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.
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