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Astronics Corp. (ATRO)
NASDAQ:ATRO

Astronics (ATRO) AI Stock Analysis

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Astronics

(NASDAQ:ATRO)

Rating:68Neutral
Price Target:
$36.00
▲(10.33%Upside)
Astronics shows a promising recovery with strong technical momentum and positive revenue growth, particularly in its Aerospace segment. However, valuation concerns due to ongoing profitability issues and external risks from tariffs and litigation weigh on the overall score. Continued focus on profitability and managing external risks will be crucial for future performance.

Astronics (ATRO) vs. SPDR S&P 500 ETF (SPY)

Astronics Business Overview & Revenue Model

Company DescriptionAstronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. It operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and communications and mass transit industries; and provides wireless communication testing for the civil land mobile radio market, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. The company was incorporated in 1968 and is headquartered in East Aurora, New York.
How the Company Makes MoneyAstronics generates revenue primarily through the sale of its products and services to commercial, military, and business aircraft manufacturers, as well as airlines and other aerospace and defense customers. The company operates through multiple segments, including Aerospace and Test Systems. The Aerospace segment contributes significantly to its revenue through the provision of electrical power and motion systems, lighting and safety systems, aircraft structures, and avionics. The Test Systems segment earns revenue by offering test solutions for electronics systems in the aerospace and defense industries. Additionally, Astronics benefits from long-standing partnerships and contracts with major industry players, which help ensure a steady stream of income through product sales, aftermarket support, and engineering services.

Astronics Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 38.91%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The first quarter of fiscal year 2025 showed strong financial performance with record revenue, bookings, and backlog in the Aerospace segment. However, the Test segment underperformed, and there are significant legal and tariff uncertainties that may affect future results.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue of $206 million was at the high end of the range and up 11% year-over-year.
Record Bookings and Backlog
First quarter bookings were $280 million, yielding a book-to-bill of 1.36, and backlog at quarter end was $673 million, both new all-time records.
Aerospace Segment Performance
Revenue of $191 million was up 17% year-over-year with an adjusted operating profit margin of 16.2%.
Improved Profitability
Adjusted net income increased to $17 million, up from $2 million last year, and adjusted EBITDA rose to $30.7 million from $17.6 million.
Operating Cash Flow and Debt Management
Operating cash flow was $20.6 million, up sharply from $2 million last year, and long-term debt net of cash was reduced by $16 million.
Negative Updates
Test Segment Challenges
The Test business had a lackluster quarter with sales of only $14.6 million and an adjusted operating loss of $2.2 million, impacted by a $1.9 million adjustment on a long-term contract.
UK Litigation Costs
Operating income included a $6.2 million true-up for the UK litigation matter and $3 million in legal expenses, with potential additional legal fee reimbursement of $7.2 million pending.
Tariff Uncertainty
Potential $10 million to $20 million tariff impact due to macroeconomic concerns with the ongoing tariff regime rollout.
Company Guidance
During the Astronics Corporation First Quarter Fiscal Year 2025 Financial Results Conference Call, the company provided guidance indicating a strong start to the year with revenue of $206 million, up 11% year-over-year, and adjusted EBITDA of $30.7 million, representing 14.9% of sales. The company noted a record first quarter booking of $280 million, achieving a book-to-bill ratio of 1.36, and ending the quarter with a backlog of $673 million. The Aerospace segment was highlighted as a major driver, with revenues of $191 million, a 17% increase year-over-year, and an adjusted operating profit margin of 16.2%. However, the Test segment experienced challenges with sales of $14.6 million and an adjusted operating loss of $2.2 million due to an adjustment on a long-term contract. The company maintained its annual revenue forecast of $820 million to $860 million but acknowledged potential upside and downside risks due to macroeconomic uncertainties and tariff implementations.

Astronics Financial Statement Overview

Summary
Astronics is on a recovery path with improved revenue and cash flow. However, profitability remains a challenge due to a negative net income. Strong cash flow growth and improved cost management are positive signs, but consistent profitability is needed for long-term financial stability.
Income Statement
65
Positive
Astronics has shown a consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $816.3 million, up from $795.4 million in the previous year. Gross profit margin improved to 25.6% in TTM, reflecting better cost management. However, despite these improvements, the company is still struggling with profitability, posting a negative net income of $3.5 million in TTM, although this is a significant improvement from previous losses.
Balance Sheet
60
Neutral
The debt-to-equity ratio stands at 0.73, indicating moderate leverage. Stockholders' equity increased to $266.8 million, representing 40.3% of total assets, which is a positive sign of financial stability. However, consistent losses in previous years have eroded equity growth, and the company must continue improving its profitability to enhance its financial position.
Cash Flow
70
Positive
Free cash flow has shown significant improvement, growing from $22.1 million to $40.2 million in TTM. The operating cash flow to net income ratio is strong, highlighting efficient cash generation relative to net income. The company has managed to increase its cash reserves, which can support ongoing operations and reduce financial risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue816.29M795.43M689.21M534.89M444.91M502.59M
Gross Profit209.20M168.34M120.80M71.54M65.36M96.84M
EBITDA61.16M50.93M19.43M-2.27M-4.68M18.96M
Net Income-3.51M-16.21M-26.42M-35.75M-25.58M-115.78M
Balance Sheet
Total Assets662.24M648.76M633.79M615.03M609.14M619.75M
Cash, Cash Equivalents and Short-Term Investments24.80M9.29M4.76M13.78M29.76M40.41M
Total Debt196.06M193.87M197.88M164.00M163.00M173.00M
Total Liabilities395.49M392.67M384.27M375.11M352.53M349.37M
Stockholders Equity266.76M256.10M249.52M239.92M256.60M270.37M
Cash Flow
Free Cash Flow40.24M22.14M-31.59M-35.99M-11.56M29.88M
Operating Cash Flow49.17M30.57M-23.95M-28.31M-5.53M37.34M
Investing Cash Flow-8.94M-8.43M-4.11M14.39M3.18M-5.80M
Financing Cash Flow-20.86M-14.53M25.43M-1.41M-7.50M-24.58M

Astronics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price32.63
Price Trends
50DMA
29.98
Positive
100DMA
26.20
Positive
200DMA
21.97
Positive
Market Momentum
MACD
0.65
Positive
RSI
52.38
Neutral
STOCH
31.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRO, the sentiment is Neutral. The current price of 32.63 is below the 20-day moving average (MA) of 33.48, above the 50-day MA of 29.98, and above the 200-day MA of 21.97, indicating a neutral trend. The MACD of 0.65 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 31.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATRO.

Astronics Risk Analysis

Astronics disclosed 42 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$11.25B159.555.10%14.50%-29.76%
71
Outperform
¥254.55B13.008.49%3.09%6.31%12.77%
68
Neutral
$1.16B-1.35%13.73%86.81%
DCDCO
68
Neutral
$1.26B36.415.25%3.02%95.76%
58
Neutral
$3.02B-4.45%5.66%52.71%
RDRDW
54
Neutral
$2.28B-451.56%1.36%-213.86%
43
Neutral
$2.21B-148.98%-2.94%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATRO
Astronics
32.63
13.01
66.31%
AVAV
AeroVironment
246.23
77.33
45.78%
DCO
Ducommun
84.91
27.69
48.39%
MRCY
Mercury Systems
51.43
22.26
76.31%
EVEX
Eve Holding
7.35
3.99
118.75%
RDW
Redwire
15.99
9.14
133.43%

Astronics Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Astronics Holds Annual Shareholders Meeting, Key Decisions Made
Neutral
May 27, 2025

On May 22, 2025, Astronics Corporation held its Annual Meeting of Shareholders, where key decisions were made. Shareholders elected the Board of Directors, ratified Ernst & Young LLP as the independent accounting firm for 2025, and approved an amendment to the 2017 Long Term Incentive Plan to increase available shares. These decisions reflect the company’s strategic direction and governance priorities, potentially impacting its operational focus and stakeholder confidence.

The most recent analyst rating on (ATRO) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Astronics stock, see the ATRO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 07, 2025