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Astronics (ATRO - Free Report) is a Zacks Rank #1 (Strong Buy) that has a D for Value and an A for Growth. This company makes lighting and electronics for cockpits, cabins and exteriors of military, commercial and private aircraft. The company recently reported a beat of the Zacks Consensus Estimate and looks to be heading back to recent highs. Let’s learn more about why this stock is the Bull of the Day.
Description
Astronics Corp. engages in the provision of electrical power generation and distribution systems. It includes motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification, and automated test systems. It operates through the Aerospace and Test Systems segments. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, develops, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications. The firm's products and solutions include Aircraft Data Systems, Aircraft Electrical Power Systems, Airfield Lighting, Custom Design & Manufacturing, Emergency Systems, Enhanced Vision Systems, IFC Antennas and Radome Systems, Inflight Entertainment System Hardware, Interiors & Structures, Lighting Systems, Seat Actuation Systems, Simulation & Training, Systems Certification, Test & Measurement and VIP IFEC & CMS Systems. The company was founded on December 5th, 1968 and is headquartered in East Aurora, NY.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Astronics (ATRO - Free Report) has topped the Zacks Consensus Estimate in each of the last four quarters. The company most recently posted EPS of $0.49 per shar when the Zacks Consensus Estimate was calling for $0.42. That 7 cent beat translates into a 16.6% positive earnings surprise.
Over the last four quarters the average positive surprise works out to be 59%.
Earnings Estimates Revisions
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Astronics (ATRO - Free Report) .
The full year 2025 has increased from $1.60 to $1.78 over the last 60 days.
2026 has increased from $2.12 to $2.43 over the same time period.
Growth
There is good growth projected for Astronics (ATRO - Free Report) . This fiscal year analysts are expecting $857M in revenue which would be good for 7.7% topline growth.
Next fiscal year, the consensus is calling for $980M and that would be good for 14.4% sales growth.
Valuation
The valuation for Astronics (ATRO - Free Report) is interesting given the growth prospects. I see a price to book multiple of 16x is pretty high given that this is not an asset slim business model. The forward PE if 27x is a little high, but the growth the company is expected to show makes up for that high multiple. Price to sales comes in at 2x, likely due to prior low levels of topline growth, but we know that is about to change.
Operating margins have increased from 5.8% to 7.2% to 8% over the last three quarters.
Good revenue growth couples with margins expansion leads to higher earnings. When we see good earnings growth the chances for higher multiples gets bigger and bigger.
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Bull of the Day: Astronics (ATRO)
Astronics (ATRO - Free Report) is a Zacks Rank #1 (Strong Buy) that has a D for Value and an A for Growth. This company makes lighting and electronics for cockpits, cabins and exteriors of military, commercial and private aircraft. The company recently reported a beat of the Zacks Consensus Estimate and looks to be heading back to recent highs. Let’s learn more about why this stock is the Bull of the Day.
Description
Astronics Corp. engages in the provision of electrical power generation and distribution systems. It includes motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification, and automated test systems. It operates through the Aerospace and Test Systems segments. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, develops, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications. The firm's products and solutions include Aircraft Data Systems, Aircraft Electrical Power Systems, Airfield Lighting, Custom Design & Manufacturing, Emergency Systems, Enhanced Vision Systems, IFC Antennas and Radome Systems, Inflight Entertainment System Hardware, Interiors & Structures, Lighting Systems, Seat Actuation Systems, Simulation & Training, Systems Certification, Test & Measurement and VIP IFEC & CMS Systems. The company was founded on December 5th, 1968 and is headquartered in East Aurora, NY.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Astronics (ATRO - Free Report) has topped the Zacks Consensus Estimate in each of the last four quarters. The company most recently posted EPS of $0.49 per shar when the Zacks Consensus Estimate was calling for $0.42. That 7 cent beat translates into a 16.6% positive earnings surprise.
Over the last four quarters the average positive surprise works out to be 59%.
Earnings Estimates Revisions
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Astronics (ATRO - Free Report) .
The full year 2025 has increased from $1.60 to $1.78 over the last 60 days.
2026 has increased from $2.12 to $2.43 over the same time period.
Growth
There is good growth projected for Astronics (ATRO - Free Report) . This fiscal year analysts are expecting $857M in revenue which would be good for 7.7% topline growth.
Next fiscal year, the consensus is calling for $980M and that would be good for 14.4% sales growth.
Valuation
The valuation for Astronics (ATRO - Free Report) is interesting given the growth prospects. I see a price to book multiple of 16x is pretty high given that this is not an asset slim business model. The forward PE if 27x is a little high, but the growth the company is expected to show makes up for that high multiple. Price to sales comes in at 2x, likely due to prior low levels of topline growth, but we know that is about to change.
Operating margins have increased from 5.8% to 7.2% to 8% over the last three quarters.
Good revenue growth couples with margins expansion leads to higher earnings. When we see good earnings growth the chances for higher multiples gets bigger and bigger.