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Innovative Solutions to Post Q1 Earnings: What's in the Cards?

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Key Takeaways

  • ISSC posted a 183.33% earnings surprise in the last reported quarter.
  • Honeywell agreement and higher air transport, engineering services sales likely boosted ISSC revenues.
  • Product and services growth is expected to have driven overall first-quarter performance.

Innovative Solutions and Support (ISSC - Free Report) is scheduled to release first-quarter fiscal 2026 earnings on Feb. 12, 2026, before market open. The company delivered an earnings surprise of 183.33% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors Likely to Affect ISSC’s Q1 Results

Higher Product sales from the September 2024 Honeywell Agreement and an increase in commercial air transport sales are likely to have boosted the company’s top line in the fiscal first quarter.

Higher Services sales, primarily driven by engineering development services and customer services, are also likely to have boosted the company’s top line in the fiscal first quarter.

Q1 Estimates for ISSC Stock

Sales growth anticipated across the company’s products and services is likely to have boosted its overall first-quarter financial performance.

The Zacks Consensus Estimate for ISSC’s first-quarter sales is pegged at $18.4 million, which indicates an increase of 15.1% from the prior-year number.

The consensus estimate for ISSC’s earnings is pegged at 10 cents per share, which indicates a year-over-year increase of 150%.

What the Zacks Model Unveils for ISSC

Our proven model does not conclusively predict an earnings beat for ISSC this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: ISSC has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: ISSC currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Below, we have mentioned a few players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases:

CAE (CAE - Free Report) is expected to report its third-quarter fiscal 2026 earnings on Feb. 12, 2026, after market close. It has an Earnings ESP of +0.57% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for CAE’s earnings is pegged at 22 cents per share, indicating year-over-year growth of 4.8%. The consensus estimate for its sales is pegged at $904.9 million, indicating year-over-year growth of 3.5%.

Rocket Lab (RKLB - Free Report) is set to report its fourth-quarter 2025 earnings on Feb. 26, 2026, after market close. It has an Earnings ESP of +4.76% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for RKLB’s loss is pegged at five cents per share, indicating year-over-year improvement. The consensus estimate for its sales is pegged at $177.9 million, indicating year-over-year growth of 34.4%.

Astronics (ATRO - Free Report) is set to report fourth-quarter 2025 earnings soon. It has an Earnings ESP of +4.75% and a Zacks Rank of 2 at present.

ATRO delivered an average earnings surprise of 59.10% in the last four quarters. The Zacks Consensus Estimate for ATRO’s earnings is pegged at 60 cents per share, indicating year-over-year growth of 25%.

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