NASDAQ$ATRO

Astronics Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Astronics experienced challenges due to the ongoing COVID-19 pandemic, particularly impacting its core aerospace markets.

Astronics Corporation reported a challenging third quarter with sales of $106.5 million and a net loss of $5.3 million. The company's largest market, Commercial Aerospace, remained weak, although Defense and Government markets remained strong.

  • Third quarter revenue was $106.5 million, a 40% decrease compared to the same period in 2019.
  • Net loss for the quarter was $5.3 million.
  • Adjusted EBITDA was $(0.1) million, near breakeven.
  • Bookings were $81.6 million, with a book-to-bill ratio of 0.77:1.

Headline financials

Total Revenue

$107M

Previous: $177M-39.8%
EPS (adj)

-$0.17

Previous: $0.03-666.7%
Adjusted EBITDA Margin

-0.1%

No prior period
Book-to-Bill Ratio

0.77

No prior period
Free Cash Flow

-$5.25M

Previous: $1.21M-534.2%
Net Income

-$5.25M

Previous: $1.21M-534.2%
Operating Income

-$9M

Previous: $5.1M-276.3%
Gross Profit

$15.2M

Previous: $36.8M-58.8%
Cash & Equivalents

$29.9M

Previous: $22.8M+31.2%
Total Assets

$637M

Previous: $778M-18.1%
Stock-Based Comp

$1.12M

Previous: $798K+40.1%

Revenue & EPS history

Astronics · Revenue · Quarterly

$107M

Q3 2020-39.8%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Astronics · $107M total across 2 segments · Q3 2020

  • Aerospace
    $82.5M-47.7%
  • Test Systems
    $24M+24.0%

Forward guidance

Astronics expects full year 2020 sales to be at, or slightly above, $500 million and anticipates being cash positive for the year with adjusted EBITDA margins of approximately 5% to 7%.

Tailwinds

  • Expects market conditions to steadily improve going forward, beginning in the fourth quarter.
  • Believes they are well positioned to benefit from improvement in core aerospace markets through 2021.
  • They are positioned to emerge from these times a better company.
  • Expects to remain cash positive and to continue to develop the products and technologies customers will require in the future.
  • Plans to use excess free cash flow from operations to reduce outstanding debt.

Headwinds

  • COVID-19 pandemic continues to impact the company's core aerospace markets.
  • Commercial Aerospace market remains weak.
  • Aftermarket remains weak with travel restrictions and quarantine rules dampening demand for airline travel.
  • 737 MAX program deliveries are not anticipated until the second half of 2021.
  • The pandemic is ongoing and the company will continue to deal with it for the remainder of 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.8%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+3.6%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+24.8%

Q4 2024

Best reaction

-23.5%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+2.9%
Q4 2025-0.7%+2.5%-18.4%
Q3 2025-1.3%-0.3%+6.6%
Q1 2025+16.3%+24.3%+42.4%
Q4 2024+24.8%+20.4%+11.8%
Q3 2024-2.4%-6.6%-11.5%
Q2 2024-12.5%-20.1%-2.6%
Q1 2024+7.9%+9.7%+20.7%
Q4 2023-1.0%-2.4%-1.7%
Q3 2023-11.4%-8.5%-6.3%
Q2 2023-19.2%-14.0%-16.4%
Q1 2023+7.2%+5.3%+18.4%
Q4 2022-3.2%-4.8%-12.1%
Q3 2022-8.9%-2.6%+16.5%
Q2 2022-0.2%+3.6%-23.3%
Q1 2022+3.3%+5.7%+9.6%
Q4 2021-7.0%-9.1%-8.1%
Q3 2021-2.1%-2.8%-23.5%
Q2 2021-14.8%-12.2%-17.5%
Q1 2021-11.2%-9.4%+3.8%
Q4 2020+0.3%-9.8%-1.5%
Q3 2020-3.0%-2.3%+77.7%
Q2 2020+1.2%+11.6%+12.0%
Q1 2020+4.4%+9.1%+99.9%
Q4 2019-13.4%-11.0%-58.8%
Q3 2019+0.9%-0.0%-5.8%
Q2 2019-23.5%-22.6%-22.7%
Q1 2019+20.5%+19.5%+29.8%
Q4 2018+1.6%+3.9%-12.0%
Q3 2018-3.0%-0.6%+6.6%
Q2 2018+9.7%+10.2%+10.0%
Q1 2018-10.0%-5.9%-0.1%
Q4 2017-5.4%-1.8%-10.5%
Q3 2017+5.5%+7.4%+23.2%
Q2 2017-12.3%-9.9%-9.1%
Q1 2017-2.0%-1.4%-1.5%
Q4 2016+1.2%-0.2%-10.5%
Q3 2016-11.9%-7.2%+4.9%
Q2 2016+5.1%+10.0%+18.0%
Q1 2016-7.3%
Q4 2015-9.9%
Q3 2015-6.0%
Q2 2015-11.7%
Q1 2015-4.4%
Q4 2014+16.5%
Q3 2014+6.4%
Q2 2014+12.7%
Q1 2014-1.8%
Q4 2013+9.6%
Q3 2013-0.9%
Q2 2013-5.6%
Q1 2013+14.6%
Q4 2009-0.1%
Q4 2011-0.1%
Q4 2012+6.5%
Q3 2012-4.0%
Q1 2011+1.0%
Q2 2012+1.1%
Q1 2012-1.9%
Q3 2011-2.6%
Q3 2010-2.6%
Q4 2010+0.1%
Q2 2010+0.1%
Q2 2011+0.1%
Q1 2010+2.8%

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