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Astronics Corp. (ATRO)
NASDAQ:ATRO
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Astronics
(NASDAQ:ATRO)
63Neutral
Astronics (ATRO) vs. S&P 500 (SPY)
Market Cap
$865.21M
Dividend YieldN/A
Average Volume (3M)504.24K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth15.41%
EPS Growth43.28%
CountryUS
Employees2,500
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.46
Shares Outstanding30,252,972
10 Day Avg. Volume915,730
30 Day Avg. Volume504,241
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.07
Price to Cash Flow (P/CF)8.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside-6.47% Downside
Rating ConsensusHold
Number of Analyst Covering1
Astronics Business Overview & Revenue Model
Company DescriptionAstronics Corporation (ATRO) is a leading provider of advanced technologies to the global aerospace, defense, and other mission-critical industries. The company specializes in designing and manufacturing innovative solutions for power distribution, lighting, avionics, connectivity, and structures. With a focus on enhancing the efficiency and safety of aircraft, Astronics serves a broad range of customers including commercial airlines, original equipment manufacturers (OEMs), and the military.
How the Company Makes MoneyAstronics makes money primarily through the sale of its proprietary products and solutions tailored to the aerospace and defense sectors. The company's revenue streams include the sale of electrical power systems, lighting and safety systems, avionics products, and connectivity solutions. Key revenue drivers include long-term contracts and partnerships with major aerospace OEMs and airlines, as well as government defense contracts. Astronics also benefits from aftermarket services, providing maintenance, repair, and overhaul (MRO) services to extend the lifecycle of its products. The company's strategic partnerships and robust R&D capabilities contribute to its competitive positioning, enabling it to innovate continuously and meet evolving industry demands.
Astronics Financial Statement Overview
Summary
Astronics is experiencing revenue growth and improved gross profit margins, reflecting a post-COVID recovery. However, ongoing operational challenges are evident with persistent net losses and low profitability margins. The balance sheet remains stable with a manageable debt level, but negative cash flows indicate a need for strategic improvements.Income Statement
Astronics shows a positive revenue growth rate of 15.41% in the TTM, indicating a recovery post-COVID disruptions. The gross profit margin improved to 24.62%, reflecting better cost management. However, the company is still facing challenges in profitability with a net loss, evidenced by a negative net profit margin of -2.04%. EBIT and EBITDA margins are also low at 3.33% and 6.74% respectively, highlighting ongoing operational efficiency issues.65
Positive
Balance Sheet
The company's balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 0.76. Return on equity remains negative at -6.33%, indicating profitability challenges. However, the equity ratio is 39.48%, suggesting a relatively stable equity position. The overall balance sheet reflects a need for enhanced operational profitability to improve financial resilience.58
Neutral
Cash Flow
Free cash flow remains negative at -$1.095 million in the TTM, though improved from the previous year. The operating cash flow to net income ratio is positive, suggesting that despite net losses, the company generates some cash from operations. However, the free cash flow to net income ratio is negative, indicating challenges in converting net income into free cash flow.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 795.43M | 689.21M | 534.89M | 444.91M | 502.59M | Gross Profit |
| 168.34M | 120.80M | 71.54M | 65.36M | 96.84M | EBIT |
| 26.47M | -6.67M | -30.04M | -33.69M | -18.65M | EBITDA |
| 26.47M | 19.43M | -2.27M | -4.68M | 18.96M | Net Income Common Stockholders |
| -16.21M | -26.42M | -35.75M | -25.58M | -115.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.29M | 4.76M | 13.78M | 29.76M | 40.41M | Total Assets |
| 648.76M | 633.79M | 615.03M | 609.14M | 619.75M | Total Debt |
| 193.87M | 197.88M | 164.00M | 163.00M | 173.00M | Net Debt |
| 184.59M | 193.12M | 150.22M | 133.24M | 132.59M | Total Liabilities |
| 392.67M | 384.27M | 375.11M | 352.53M | 349.37M | Stockholders Equity |
| 256.10M | 249.52M | 239.92M | 256.60M | 270.37M |
| Cash Flow | Free Cash Flow | |||
| 22.14M | -31.59M | -35.99M | -11.56M | 29.88M | Operating Cash Flow |
| 30.57M | -23.95M | -28.31M | -5.53M | 37.34M | Investing Cash Flow |
| -8.43M | -4.11M | 14.39M | 3.18M | -5.80M | Financing Cash Flow |
| -14.53M | 25.43M | -1.41M | -7.50M | -24.58M |
Astronics Technical Analysis
Positive
24.59
Price Trends
18.62
Positive
17.93
Positive
19.03
Positive
Market Momentum
1.69
Negative
76.63
Negative
79.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRO, the sentiment is Positive. The current price of 24.59 is above the 20-day moving average (MA) of 20.94, above the 50-day MA of 18.62, and above the 200-day MA of 19.03, indicating a bullish trend. The MACD of 1.69 indicates Negative momentum. The RSI at 76.63 is Negative, neither overbought nor oversold. The STOCH value of 79.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRO.
Astronics Risk Analysis
Astronics disclosed 41 risk factors in its most recent earnings report. Astronics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astronics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $22.44B | 27.81 | 8.73% | ― | 0.53% | -7.18% | |
78 Outperform | $30.57B | 63.49 | 16.18% | 0.09% | 23.06% | 32.43% | |
71 Outperform | $39.98B | 27.66 | 7.85% | 2.13% | 9.82% | 22.33% | |
63 Neutral | $865.21M | ― | -6.41% | ― | 15.41% | 43.28% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
61 Neutral | $2.54B | ― | -6.10% | ― | -1.21% | -4.63% | |
52 Neutral | $4.44B | 272.61 | 1.40% | ― | 9.57% | ― |
* Industrials Sector Average
Performance Comparison
ATRO
Astronics
24.59
6.85
38.61%
LHX
L3Harris Technologies
212.33
0.95
0.45%
HEI
HEICO
253.11
65.50
34.91%
KTOS
Kratos Defense
29.06
11.52
65.68%
MRCY
Mercury Systems
43.24
13.39
44.86%
TDY
Teledyne Technologies
488.42
67.18
15.95%
Astronics Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 23.20% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, significant margin improvements, and a favorable outcome in a major patent litigation case. However, challenges included the impact of the Boeing strike, restructuring and legal expenses, and a warranty reserve impact. Despite these challenges, the positive aspects, such as record aerospace segment revenue and positive cash flow, indicate a generally positive outlook.Highlights
Record Aerospace Segment Revenue
The aerospace segment hit a new record in revenue with sales of $188.5 million, an 11.7% increase over the fourth quarter in 2023.
Significant Margin Improvement
Adjusted operating income for the fourth quarter was 11.4%, up from 5.9% last year. Adjusted EBITDA was $31.5 million or 15.1% of sales.
Positive Cash Flow
The company generated $26.4 million in cash from operations for the quarter, marking the largest cash-generating quarter since 2019.
Successful UK Patent Litigation Outcome
The UK court ruled in favor of Astronics, requiring them to pay $11.8 million in damages, significantly less than the potential $105 million.
Strong Sales Growth
Sales grew to $795 million for the year, up 15.4% over 2023, with an average growth of over 20% over the last three years.
Lowlights
Impact of Boeing Strike
The Boeing strike negatively impacted bookings by about $10 million in both the third and fourth quarters.
Restructuring and Legal Expenses
There were restructuring charges in the test segment of $1.4 million and legal expenses of $6.1 million due to ongoing patent litigation.
Warranty Reserve Impact
An additional $1.7 million warranty reserve was recorded for a business jet's electrical power system requiring field modification.
Lilium Bankruptcy Loss
The company incurred a $0.8 million inventory charge due to the Lilium bankruptcy.
Company Guidance
In the fourth quarter of fiscal year 2024, Astronics Corporation reported strong financial performance, achieving sales of $208.5 million, marking the high end of their forecasted range. Adjusted operating income for the quarter rose to 11.4%, up from 5.9% the previous year, while adjusted net income increased to 8.1% from 3.3%. Adjusted EBITDA was reported at $31.5 million, or 15.1% of sales. The aerospace segment, contributing significantly to these results, recorded sales of $188.5 million, an 11.7% year-over-year increase, achieving an all-time high. Although the company faced challenges such as a Boeing strike and atypical charges, including a $1.7 million warranty reserve and $6.1 million in legal expenses, they concluded the quarter with a positive cash flow of $26.4 million. Additionally, the company ended the year with a backlog of $599 million and maintained a strong liquidity position with $18.4 million in cash. Looking ahead to 2025, Astronics expects sales to range between $820 million and $860 million, with a focus on facility consolidation and potential acquisitions as part of their growth strategy.Astronics Corporate Events
Legal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Astronics Reports 15.4% Sales Increase in 2024
Neutral
Mar 4, 2025
Astronics Corporation reported its financial results for the fourth quarter and full year of 2024, showcasing a 15.4% increase in annual sales to $795.4 million, driven primarily by strong demand in the Aerospace segment. Despite a net loss of $2.8 million in the fourth quarter, the company achieved an adjusted EBITDA of $31.5 million, reflecting improved operating efficiencies and strong cash flow. The company faced a $4.8 million reserve increase due to a UK patent infringement ruling, yet managed to increase its operating income by leveraging higher sales volumes. The company’s robust backlog and improved liquidity position it well for future opportunities in 2025.
Legal Proceedings
Astronics Faces $11.9 Million Patent Dispute Ruling
Negative
Feb 21, 2025
On February 21, 2025, Astronics Corporation announced that a UK court ruled in its long-standing patent infringement dispute with Lufthansa Technik AG, mandating Astronics to pay approximately $11.9 million in damages. The company expects the final liability payment in the second quarter of 2025, with a potential appeal possibly being heard in early 2026.
Executive/Board ChangesBusiness Operations and Strategy
Astronics Appoints Fay West to Board of Directors
Positive
Feb 7, 2025
On February 7, 2025, Astronics Corporation announced the appointment of Fay West to its Board of Directors, effective February 6, 2025. Fay West brings over two decades of financial leadership experience from her roles at Tennant Company and other major firms, enhancing Astronics’ strategic capabilities as it focuses on growth and innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.