Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.8% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $1.15 billion, up 15.7% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.
Laurans A. Mendelson, HEICO's Executive Chairman, along with Co-Chief Executive Officers Eric A. Mendelson and Victor H. Mendelson, commented on the Company's third quarter results stating, "We are proud to report record quarterly net income, operating income and net sales, mainly reflecting robust double-digit consolidated organic net sales growth. These results are highlighted by consistently strong organic net sales growth across the Flight Support Group's product lines and impressive double-digit organic net sales growth for the Electronic Technologies Group's other electronics and space products.
Interestingly, the stock is up 5.1% since reporting and currently trades at $321.
Read why we think that HEICO is one of the best aerospace stocks, our full report is free.
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 achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 38.4% since reporting. It currently trades at $8.54.
Is now the time to buy AerSale? 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.
Interestingly, the stock is up 18.7% since the results and currently trades at $41.98.
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 topped analysts’ expectations by 3.4%. Overall, 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 7.1% since reporting and currently trades at $240.24.
Read our full, actionable report on Woodward 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. This number surpassed analysts’ expectations by 8.6%. It was a stunning quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
The stock is up 2.9% since reporting and currently trades at $77.25.
Read our full, actionable report on AAR here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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