Back to top

Bear of the Day: Astronics (ATRO)

Read MoreHide Full Article

Astronics (ATRO - Free Report) is a Zacks Rank #5 (Strong Sell) and this comes just after the company posted a beat of the Zacks Consensus Estimate. Let's take a look at why the stock is a Zacks Rank #5 (Strong Sell) and review the most recent quarter.

Description

Astronics Corporation is a manufacturer of specialized lighting and electronics for the cockpit, cabin and exteriors of military, commercial transport and private business jet aircraft. A major lighting and electronics supplier to the aircraft industry, its strategy is to expand from a components and subsystems supplier to an aircraft lighting systems integrator, increasing the value and content it provides to various aircraft platforms. Luminescent Systems Inc. is Astronics' primary operating subsidiary which produces its aerospace and defense products.

Recent Quarter

ATRO reported EPS of $0.52 when $0.47 was expected.  That translates into a 10% positive earnings surprise.  The beat of 5 cents was good, but smaller than the 15 cent beat the company posted last quarter.

The two most recent quarters were solid beats, the two quarter before that were both misses.  So the recent earnings history is more hit and miss.

Estimate Revisions

The Zacks Rank looks at earnings history, but much more weight is placed on the revisions to earnings estimates.

Following the recent beat, the Zacks Consensus Estimate for the current quarter went up... and that made me wonder how this is a Zacks Rank #5 (Strong Sell).

It turns out the full year number (which is more heavily weighted than the quarterly numbers) fell from $1.60 to $1.46.

Next year also saw a decrease, with  the Zacks Consensus Estimate for 2019 sliding from $2.01 to $1.77.

Chart

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Astronics Corporation (ATRO) - free report >>

More from Zacks Bear of the Day

You May Like