Let’s dig into the relative performance of AerSale (NASDAQ: ASLE) and its peers as we unravel the now-completed Q3 aerospace earnings season.

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 Q3. As a group, revenues missed analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 7.9% on average since the latest earnings results.

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 $71.19 million, down 13.9% year on year. This print fell short of analysts’ expectations by 30.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and adjusted operating income estimates.

AerSale delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $7.01.

Read our full report on AerSale here, it’s free for active Edge members.

Best Q3: 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 $739.6 million, up 11.8% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

AAR pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $83.28.

Is now the time to buy AAR? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $103.4 million, up 50.7% year on year, falling short of analysts’ expectations by 22.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

Interestingly, the stock is up 12.4% since the results and currently trades at $8.31.

Read our full analysis of Redwire’s results here.

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 $1.21 billion, up 19.3% year on year. This number topped analysts’ expectations by 3.2%. It was an exceptional quarter as it also produced an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates.

The stock is up 6.3% since reporting and currently trades at $329.42.

Read our full, actionable report on HEICO here, it’s free for active Edge members.

Curtiss-Wright (NYSE: CW)

Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.

Curtiss-Wright reported revenues of $869.2 million, up 8.8% year on year. This print lagged analysts' expectations by 0.5%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

The stock is down 5.4% since reporting and currently trades at $553.67.

Read our full, actionable report on Curtiss-Wright here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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