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 Q4, starting with Boeing (NYSE: BA).
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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.
Weakest Q4: Boeing (NYSE: BA)
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Boeing reported revenues of $15.24 billion, down 30.8% year on year. This print fell short of analysts’ expectations by 6.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan," said Kelly Ortberg, Boeing president and chief executive officer.
Boeing delivered the slowest revenue growth of the whole group. The stock is down 1.6% since reporting and currently trades at $172.50.
Read our full report on Boeing here, it’s free.
Best Q4: 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 $1.03 billion, up 14.9% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 14.1% since reporting. It currently trades at $260.01.
Is now the time to buy HEICO? 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 $197.3 million, up 2.6% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 3.1% since the results and currently trades at $59.45.
Read our full analysis of Ducommun’s results here.
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 $208.5 million, up 6.8% year on year. This result beat analysts’ expectations by 7%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Astronics delivered the biggest analyst estimates beat among its peers. The stock is up 27.3% since reporting and currently trades at $25.43.
Read our full, actionable report on Astronics here, it’s free.
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 $772.7 million, down 1.8% year on year. This print met analysts’ expectations. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ organic revenue estimates.
The stock is flat since reporting and currently trades at $186.48.
Read our full, actionable report on Woodward here, it’s free.
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