Astronics Earnings: Here’s Why Investors Don’t Like These Results

Astronics Corp. (NASDAQ:ATRO) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.73%.

Astronics Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12.82% to $0.34 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 8.94% to $70.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Astronics Corp. reported adjusted EPS income of $0.34 per share. By that measure, the company missed the mean analyst estimate of $0.45. It missed the average revenue estimate of $74.72 million.

Quoting Management: Peter J. Gundermann, President and Chief Executive Officer, commented, “Operationally, we had solid results in the second quarter. Shipments were strong at $70.8 million, our second highest quarterly total in our history. And, we achieved net income of $5.2 million, even after incurring significant expenses related to acquisitions and financing. We had healthy bookings in the quarter of over $66 million. Our markets remain robust, and we continue to see strong demand for our products.”
Mr. Gundermann continued, “Although we closed our Peco acquisition on July 18 after our second quarter ended, results for the second quarter included about $900,000 of expenses related to the acquisition and its financing. We expect the positive aspects of the acquisition will begin to become apparent in our third quarter results.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 39.29% from $0.56 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.48 to a profit $0.5. For the current year, the average estimate has moved up from a profit of $1.82 to a profit of $2.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)