As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace industry, including Ducommun (NYSE: DCO) 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 13 aerospace stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 0.7% below.

In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.

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 $212.6 million, up 5.5% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 1.8% since reporting and currently trades at $93.56.

Is now the time to buy Ducommun? Access our full analysis of the earnings results 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 an impressive beat of analysts’ adjusted operating income estimates and a solid 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 2.3% since reporting. It currently trades at $81.50.

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

Weakest Q3: 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, falling short of analysts’ expectations by 30.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

AerSale delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $6.95.

Read our full analysis of AerSale’s results here.

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 $155.1 million, up 48% year on year. This result surpassed analysts’ expectations by 2.1%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 7% since reporting and currently trades at $55.67.

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

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 $995.3 million, up 16.5% year on year. This print topped analysts’ expectations by 5.9%. It was a very strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 9.7% since reporting and currently trades at $290.80.

Read our full, actionable report on Woodward 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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