Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Rocket Lab (NASDAQ: RKLB) 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.
While some aerospace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.
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 $144.5 million, up 36% year on year. This print exceeded analysts’ expectations by 7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 7.3% since reporting and currently trades at $47.46.
Is now the time to buy Rocket Lab? Access our full analysis of the earnings results here, it’s 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 estimates and a solid beat of analysts’ EBITDA estimates.
AerSale scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 44.1% since reporting. It currently trades at $8.89.
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 3.5% since the results and currently trades at $36.62.
Read our full analysis of Astronics’s results here.
Hexcel (NYSE: HXL)
Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.
Hexcel reported revenues of $489.9 million, down 2.1% year on year. This number surpassed analysts’ expectations by 3%. Zooming out, it was a satisfactory quarter as it also logged full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ EBITDA estimates.
The stock is flat since reporting and currently trades at $62.37.
Read our full, actionable report on Hexcel here, it’s free.
Textron (NYSE: TXT)
Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.72 billion, up 5.4% year on year. This result beat analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
The stock is down 7.4% since reporting and currently trades at $80.76.
Read our full, actionable report on Textron here, it’s free.
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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