NASDAQ$ATRO

Astronics Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported sales increase driven by higher demand in commercial aerospace and test systems, but margins were under pressure due to inflation and supply chain challenges.

Astronics Corporation reported Q3 2022 financial results with sales of $131.4 million, an 18% increase over the prior-year period. The operating loss was $14.3 million, including $4.6 million in atypical costs. Bookings totaled $184.2 million, up 20% over the prior-year period, resulting in a book-to-bill ratio of 1.40. Backlog increased 32% from year-end 2021 to a record $547.1 million, with aerospace backlog reaching a record $464.3 million.

  • Sales for the quarter were $131.4 million, up 18% over the prior-year period.
  • Operating loss was $14.3 million, including $4.6 million in atypical costs, a portion of which is expected to be recovered in the fourth quarter.
  • Bookings totaled $184.2 million, up 20% over the prior-year period; achieved book-to-bill ratio of 1.40.
  • Backlog increased 32% from year end 2021 to a record $547.1 million; Aerospace backlog reached a record $464.3 million

Headline financials

Total Revenue

$131M

Previous: $112M+17.5%
EPS (adj)

-$0.46

Previous: -$0.23-100.0%
Book-to-Bill Ratio

1.4

Previous: 1.37+2.2%
Free Cash Flow

-$14.9M

Previous: -$7.17M-107.1%
Net Income

-$14.9M

Previous: -$7.17M-107.1%
Operating Income

-$14.3M

Previous: -$4.5M-218.2%
Gross Profit

$14.4M

Previous: $17.2M-16.5%
Cash & Equivalents

$2.57M

Previous: $29.1M-91.2%
Total Assets

$599M

Previous: $610M-1.9%
Stock-Based Comp

$1.46M

Previous: $1.45M+0.8%

Revenue & EPS history

Astronics · Revenue · Quarterly

$131M

Q3 2022+17.5%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Astronics · $131M total across 2 segments · Q3 2022

  • Aerospace
    $112M+17.1%
  • Test Systems
    $19.3M+19.8%

Forward guidance

The Company expects sales of $140 million to $150 million in the fourth quarter of 2022 and initial look at 2023 suggests sales of $640 million to $680 million.

Tailwinds

  • Revenue has been starting to ramp and we believe it will accelerate as we move forward.
  • Expecting sales of $140 million to $150 million in the fourth quarter of 2022, an increase of 10%, or $14 million, at the midpoint over the trailing third quarter.
  • Estimated 2022 sales to be up approximately 17% from last year’s revenue of $445 million.
  • Initial look at 2023 suggests sales of $640 million to $680 million.
  • Anticipate continued recovery over the course of 2023.

Headwinds

  • Disappointed with the lower sales level for the year than we had previously anticipated.
  • Supply chain has been a challenge during the last year.
  • Refinancing process has taken much longer than expected given delays with property appraisals as well as the many elements of the structure.
  • Margins were under pressure in the quarter because of inflation and supply chain challenges that are widespread these days.
  • Significant legal and customer accommodation expenses of $4 million, part of which we expect to recover.

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 2022

Historical avgQ3 2022

-0.8%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+4.1%

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%+22.9%
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 2011-0.1%
Q4 2009-0.1%
Q4 2012+6.5%
Q3 2012-4.0%
Q1 2011+1.0%
Q2 2012+1.1%
Q1 2012-1.9%
Q3 2010-2.6%
Q3 2011-2.6%
Q4 2010+0.1%
Q2 2010+0.1%
Q2 2011+0.1%
Q1 2010+2.8%

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