NASDAQ$ATRO

Astronics Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a 25% increase in sales and improved profitability driven by growth and implemented initiatives.

Astronics Corporation reported a 25% increase in sales to $203.7 million in the third quarter of 2024, the highest quarterly level since Q1 2019. The company's adjusted EBITDA grew by 207% to $27.1 million, with Aerospace segment adjusted operating margin at 14.2%. However, the company experienced a net loss of $11.7 million, which included $7.0 million in refinancing costs, though adjusted net income was $12.2 million.

  • Sales increased by $40.8 million to $203.7 million, marking the highest quarterly sales since Q1 2019.
  • Aerospace operating income reached $14.3 million, with an adjusted operating income of $25.3 million, representing 14.2% of sales.
  • Net loss was $11.7 million, or $0.34 per diluted share, including a $7.0 million impact from refinancing costs; adjusted net income was $12.2 million, or $0.35 per diluted share.
  • Adjusted EBITDA grew by 207% to $27.1 million, 13.3% of sales, up $18.2 million over the prior-year period and $6.8 million over trailing second quarter.

Headline financials

Total Revenue

$204M

Previous: $163M+25.0%
EPS

-$0.34

Previous: -$0.51+33.3%
Adjusted EBITDA

$27.1M

Previous: $8.83M+206.5%
Adjusted EBITDA Margin

13.3%

Previous: 5.4%+146.3%
Total Backlog

$645M

No prior period
Operating Margin

4.1%

No prior period
Adjusted Operating Income

$19.6M

No prior period
Adjusted Operating Margin

9.6%

No prior period
Aerospace Operating Margin

8.0%

No prior period
Adj Aerospace Op Profit

$25.3M

No prior period
Adj Aerospace Margin

14.2%

No prior period
Capital Expenditures

-$1.85M

Previous: -$2.23M+17.1%
Free Cash Flow

-$11.7M

Previous: -$17M+30.9%
Net Income

-$11.7M

Previous: -$17M+30.9%
Operating Income

$8.37M

Previous: -$14.5M+157.8%
Gross Profit

$42.7M

Previous: $20.6M+107.3%
Cash & Equivalents

$5.18M

Previous: $3.98M+30.0%
Total Assets

$652M

Previous: $631M+3.3%
Stock-Based Comp

$1.77M

Previous: $1.61M+10.0%

Revenue & EPS history

Astronics · Revenue · Quarterly

$204M

Q3 2024+25%vs Q3 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Astronics · $163M total across 2 segments · Q3 2023

  • Aerospace
    $142M+26.7%
  • Test Systems
    $20.8M+8.1%

Forward guidance

The company expects fourth quarter sales of $190 million to $210 million and is adjusting its 2024 revenue guidance to $777 million to $797 million.

Tailwinds

  • Closing in on another year of strong double-digit growth.
  • Assuming we attain the mid-point of the range for 2024, we will have averaged 21% growth over each of the last three years.
  • Profitability has benefited from the growth
  • Profitability has benefited from the many improvement initiatives we have implemented over the last several years
  • 2025 will see a continuation of these trends.

Headwinds

  • Company considered the broad range of factors affecting the business, including the work stoppage at Boeing, in issuing its guidance.
  • The company expects fourth quarter sales of $190 million to $210 million
  • Legal Proceedings: The UK court fully upheld the subject patent and found that the Company was infringing. A damages hearing was conducted in October 2024 and a ruling is expected later this year or early in 2025.
  • Astronics reserved $7.4 million to cover anticipated damages, but the plaintiff is seeking damages of up to approximately $105 million, excluding interest.
  • Based on UK legal practices, the Company expects that some amount of damages may be due in early 2025.

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 2024

Historical avgQ3 2024

-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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