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Bear of the Day: Astronics (ATRO)

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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.


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.


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