Let’s dig into the relative performance of Woodward (NASDAQ: WWD) and its peers as we unravel the now-completed Q1 aerospace earnings season.
Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.
The 15 aerospace stocks we track reported a strong Q1. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.6% below.
Luckily, aerospace stocks have performed well with share prices up 30.7% on average since the latest earnings results.
Woodward (NASDAQ: WWD)
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Woodward reported revenues of $883.6 million, up 5.8% year on year. This print exceeded analysts’ expectations by 5.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
"Our strong second quarter results were in line with our expectations, reflecting the dedication of our members in a volatile environment,” said Chip Blankenship, Chairman and Chief Executive Officer.
Interestingly, the stock is up 38.8% since reporting and currently trades at $251.97.
Is now the time to buy Woodward? Access our full analysis of the earnings results here, it’s free.
Best Q1: Curtiss-Wright (NYSE: CW)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Curtiss-Wright reported revenues of $805.6 million, up 13% year on year, outperforming analysts’ expectations by 5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 32.6% since reporting. It currently trades at $480.79.
Is now the time to buy Curtiss-Wright? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Hexcel (NYSE: HXL)
Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.
Hexcel reported revenues of $456.5 million, down 3.3% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
Hexcel delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 16.2% since the results and currently trades at $58.69.
Read our full analysis of Hexcel’s results here.
Howmet (NYSE: HWM)
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Howmet reported revenues of $1.94 billion, up 6.5% year on year. This number was in line with analysts’ expectations. It was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The stock is up 32.5% since reporting and currently trades at $183.50.
Read our full, actionable report on Howmet here, it’s free.
Astronics (NASDAQ: ATRO)
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Astronics reported revenues of $205.9 million, up 11.3% year on year. This print topped analysts’ expectations by 7.3%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Astronics pulled off the biggest analyst estimates beat among its peers. The stock is up 50.1% since reporting and currently trades at $35.24.
Read our full, actionable report on Astronics here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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