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Should You Buy, Hold or Sell Astronics Stock Ahead of Q1 Earnings?
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Key Takeaways
Astronics is expected to post Q1 earnings growth driven by Aerospace segment strength.
ATRO may benefit from higher airline demand for cabin power and connectivity products.
ATRO shares surged 157.2% in the past year, outperforming industry and sector gains.
Astronics Corporation (ATRO - Free Report) is slated to release first-quarter 2026 results on May 12, 2026, after market close.
The Zacks Consensus Estimate for earnings is pegged at 55 cents per share, suggesting an improvement of 25% from the prior-year quarter’s reported figure of 44 cents. The consensus estimate for sales is pegged at $222.8 million, suggesting an improvement of 8.2% from the prior-year quarter’s reported figure of $205.9 million.
Image Source: Zacks Investment Research
ATRO has an impressive earnings surprise history. Its earnings beat estimates in each of the four trailing quarters, the average surprise being 31.72%.
Image Source: Zacks Investment Research
Earnings Whisper for ATRO Stock
Our proven model does not conclusively predict an earnings beat for ATRO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
TDY’s total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Key Factors to Consider for ATRO’s Q1 Results
Higher commercial transport sales, backed by increased demand for cabin power and in-flight entertainment as well as connectivity products from the airlines, as a result of rapidly growing global commercial air traffic, are likely to have bolstered ATRO’s Aerospace business segment’s sales. Higher sales from military aircraft markets, driven by increased demand for lighting and safety products, are also likely to have bolstered this unit’s sales in the to-be-reported quarter.
Lower sales of radio test sets are likely to have impacted Astronics’ Test Systems unit.
Strong sales performance from ATRO’s Aerospace businesses, which constitute approximately 90% of its total revenues, is also likely to have boosted its overall top-line performance in the quarter.
Factors like strong gross profit margin expansion earned from continued sales volume growth and favorable operating leverage in the Aerospace unit are expected to have bolstered ATRO’s first-quarter earnings.
Price Performance & Valuation
Astronics’ shares have surged a solid 157.2% in the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s growth of 25.9% as well as the broader Zacks Aerospace sector’s rise of 12.1%. It also came in above the S&P 500’s gain of 31.8% in the same time frame.
Image Source: Zacks Investment Research
Shares of TransDigm Group and Teledyne Technologies have lost 14.3% and gained 25.8%, respectively.
From a valuation perspective, ATRO’s forward 12-month price-to-sales (P/S) is 2.72X, a discount to its industry’s average of 11.98X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry.
Image Source: Zacks Investment Research
Its industry peers are currently trading at a premium compared with ATRO. While the forward 12-month price/sales multiple for TransDigm Group is 6.33X, the same for Teledyne Technologies is 4.40X.
Investment Thesis
Although growth prospects in the global aerospace and defense industry remain strong, Astronics continues to face a few challenges that investors should watch closely. These include ongoing supply-chain issues, rising raw material and labor costs, as well as a shortage of skilled workers.
Despite these headwinds, the continued recovery and expansion of global commercial air travel remain major growth drivers for ATRO. The company’s upcoming first-quarter results are expected to reflect these positive trends, supported by healthy revenue and earnings growth.
In addition, Astronics has a solid presence in the defense market, which helps diversify its business and offers stability during periods of market uncertainty.
What Should an Investor do Now?
ATRO appears well-positioned ahead of its first-quarter results, supported by expectations of year-over-year earnings growth, strong momentum in its Aerospace segment and an impressive earnings surprise history. The company has also delivered strong stock price performance over the past year, reflecting improving investor confidence and solid business fundamentals.
Strength in commercial aerospace demand, supported by growing global air travel and higher demand for cabin power, connectivity and safety products, is expected to drive its quarterly performance. Combined with its diversified presence in the defense market, these factors make Astronics an attractive stock. Investors looking for exposure in the aerospace and defense sector may consider adding ATRO stock to their portfolios right now.
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Should You Buy, Hold or Sell Astronics Stock Ahead of Q1 Earnings?
Key Takeaways
Astronics Corporation (ATRO - Free Report) is slated to release first-quarter 2026 results on May 12, 2026, after market close.
The Zacks Consensus Estimate for earnings is pegged at 55 cents per share, suggesting an improvement of 25% from the prior-year quarter’s reported figure of 44 cents. The consensus estimate for sales is pegged at $222.8 million, suggesting an improvement of 8.2% from the prior-year quarter’s reported figure of $205.9 million.
Image Source: Zacks Investment Research
ATRO has an impressive earnings surprise history. Its earnings beat estimates in each of the four trailing quarters, the average surprise being 31.72%.
Image Source: Zacks Investment Research
Earnings Whisper for ATRO Stock
Our proven model does not conclusively predict an earnings beat for ATRO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ATRO has an Earnings ESP of 0.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Defense Releases
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
TDY’s total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Key Factors to Consider for ATRO’s Q1 Results
Higher commercial transport sales, backed by increased demand for cabin power and in-flight entertainment as well as connectivity products from the airlines, as a result of rapidly growing global commercial air traffic, are likely to have bolstered ATRO’s Aerospace business segment’s sales. Higher sales from military aircraft markets, driven by increased demand for lighting and safety products, are also likely to have bolstered this unit’s sales in the to-be-reported quarter.
Lower sales of radio test sets are likely to have impacted Astronics’ Test Systems unit.
Strong sales performance from ATRO’s Aerospace businesses, which constitute approximately 90% of its total revenues, is also likely to have boosted its overall top-line performance in the quarter.
Factors like strong gross profit margin expansion earned from continued sales volume growth and favorable operating leverage in the Aerospace unit are expected to have bolstered ATRO’s first-quarter earnings.
Price Performance & Valuation
Astronics’ shares have surged a solid 157.2% in the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s growth of 25.9% as well as the broader Zacks Aerospace sector’s rise of 12.1%. It also came in above the S&P 500’s gain of 31.8% in the same time frame.
Image Source: Zacks Investment Research
Shares of TransDigm Group and Teledyne Technologies have lost 14.3% and gained 25.8%, respectively.
From a valuation perspective, ATRO’s forward 12-month price-to-sales (P/S) is 2.72X, a discount to its industry’s average of 11.98X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry.
Image Source: Zacks Investment Research
Its industry peers are currently trading at a premium compared with ATRO. While the forward 12-month price/sales multiple for TransDigm Group is 6.33X, the same for Teledyne Technologies is 4.40X.
Investment Thesis
Although growth prospects in the global aerospace and defense industry remain strong, Astronics continues to face a few challenges that investors should watch closely. These include ongoing supply-chain issues, rising raw material and labor costs, as well as a shortage of skilled workers.
Despite these headwinds, the continued recovery and expansion of global commercial air travel remain major growth drivers for ATRO. The company’s upcoming first-quarter results are expected to reflect these positive trends, supported by healthy revenue and earnings growth.
In addition, Astronics has a solid presence in the defense market, which helps diversify its business and offers stability during periods of market uncertainty.
What Should an Investor do Now?
ATRO appears well-positioned ahead of its first-quarter results, supported by expectations of year-over-year earnings growth, strong momentum in its Aerospace segment and an impressive earnings surprise history. The company has also delivered strong stock price performance over the past year, reflecting improving investor confidence and solid business fundamentals.
Strength in commercial aerospace demand, supported by growing global air travel and higher demand for cabin power, connectivity and safety products, is expected to drive its quarterly performance. Combined with its diversified presence in the defense market, these factors make Astronics an attractive stock. Investors looking for exposure in the aerospace and defense sector may consider adding ATRO stock to their portfolios right now.