Latest news with #CurtissWright
Yahoo
6 days ago
- Business
- Yahoo
Astronics Soars 118% YTD: Should You Buy, Hold or Fold the Stock?
Astronics Corporation's ATRO shares have surged a solid 118.4% in the year-to-date period, outperforming both the Zacks Aerospace-Defense Equipment industry and the broader Zacks Aerospace sector's gain of 19.3%. It also came above the S&P 500's return of 1.2% in the same time frame. Image Source: Zacks Investment Research Other industry players like Leonardo DRS DRS and Curtiss-Wright Corp. CW have delivered a similar stellar performance in the same period. Shares of DRS and CW have surged 42.8% and 33.4%, respectively, year to date. With global air travel rising steadily of late and defense modernization gaining pace, aerospace technology stocks like Astronics have been witnessing strong upward momentum, as evident from its aforementioned share price hike. This may prompt investors to consider adding ATRO to their portfolios. However, before making a hasty investment call, it's crucial to explore the key factors fueling ATRO's recent share price momentum, its prospects for sustained growth, and risks (if any) that could affect future investor returns. Astronics has gained strong investor confidence in 2025, driven by robust quarterly results, innovative product launches and industry recognition. The company began the year by announcing preliminary fourth-quarter and full-year 2024 revenues. Quarterly revenues of $208-$210 million (up 7% at the midpoint) and full-year revenues of $796 million reflected a 15.5% increase year-over-year. In April, Astronics launched the SkyShow Server — an advanced moving map system with 4K visuals and real-time flight data — raising the bar for in-flight entertainment and aircraft cabin integration. The same month, its EmPower UltraLite G2 Power System earned the 2025 PAX Award for Best In-Seat Power Solution, underscoring its innovation and leadership in passenger power systems. In May, Astronics reported a strong first-quarter performance, with revenues rising 11.3% year over year and gross profit up 28.1%, driven by strength in its Aerospace segment. Backed by record bookings of $279.7 million, the company's backlog surged to a historic high of $673 million as of March 2025. Together, these achievements have significantly strengthened Astronics' investor sentiment, which has been reflected in its share price hike. Astronics ended March 2025 with cash and cash equivalents of $26 million. While its long-term debt totaled $160 million as of first-quarter 2025-end, its current debt was nil. So, it is safe to conclude that the stock boasts a solid solvency position in the near term, which, in turn, should enable ATRO to invest in new product innovation. After all, technological innovation is a major growth catalyst for stocks like ATRO, as both the commercial and defense aerospace markets increasingly thrive on next-gen solutions. Looking ahead, as airlines expand their fleets and enhance passenger experiences, driven by rapidly growing air travel demand worldwide, there is a heightened demand for advanced cabin power systems and in-flight entertainment and connectivity (IFEC) solutions. This should bode well for Astronics, which is already capitalizing on this trend, as evident from the 13.3% year-over-year increase in its first-quarter 2025 Commercial Transport sales. Now, let's take a sneak peek at ATRO's near-term earnings and sales estimates to check whether they also reflect similar growth prospects. The Zacks Consensus Estimate for ATRO's 2025 sales suggests year-over-year growth of 6.4%, while that for 2026 sales indicates an improvement of 8.5%. The 2025 and 2026 bottom-line estimates show a similar improving trend. Moreover, the upward revision in its yearly earnings estimate indicates that investors are gaining confidence in this stock's earnings capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research In terms of valuation, ATRO's forward 12-month price-to-earnings (P/E) is 21.10X, a discount to the industry average of 46.49X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared to that of its industry average. Image Source: Zacks Investment Research Other industry peers are trading at a premium to ATRO. While DRS is trading at a forward 12-month P/E of 39.46X, CW is trading at 36.38X. The primary challenges that aerospace-defense stocks like ATRO, CW, and DRS continue to face include varying levels of supply-chain pressures stemming from the residual impacts of the COVID-19 pandemic, shortage of raw material, cost increases, and a rise in labor costs and labor shortage, particularly for skilled labor. Moreover, the recently imposed heightened tariff on the import of goods from almost all trading partners of the United States is likely to exacerbate the supply-chain challenge, which, altogether, might cause a delay in the delivery of finished products by ATRO. This, in turn, may hurt its operational results. To conclude, investors interested in ATRO may consider adding this stock to their portfolio, given its discounted valuation, upbeat near-term sales estimates, impressive share price performance, and upward revision in earnings estimates. The stock has a VGM Score of A, which is also a favorable indicator of strong performance. The company's Zacks Rank #1 (Strong Buy) further supports our thesis. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astronics Corporation (ATRO) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Leonardo DRS, Inc. (DRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
26-05-2025
- Business
- Yahoo
HEICO (HEI) To Report Earnings Tomorrow: Here Is What To Expect
Aerospace and defense company HEICO (NSYE:HEI) will be reporting earnings tomorrow after the bell. Here's what to expect. HEICO beat analysts' revenue expectations by 5.4% last quarter, reporting revenues of $1.03 billion, up 14.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' EPS estimates. Is HEICO a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting HEICO's revenue to grow 11% year on year to $1.06 billion, slowing from the 38.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HEICO has missed Wall Street's revenue estimates four times over the last two years. Looking at HEICO's peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Curtiss-Wright delivered year-on-year revenue growth of 13%, beating analysts' expectations by 5%, and Astronics reported revenues up 11.3%, topping estimates by 7.3%. Curtiss-Wright traded up 4.3% following the results while Astronics was also up 16.6%. Read our full analysis of Curtiss-Wright's results here and Astronics's results here. There has been positive sentiment among investors in the aerospace segment, with share prices up 7.9% on average over the last month. HEICO is up 8.3% during the same time and is heading into earnings with an average analyst price target of $269.69 (compared to the current share price of $268). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
HEICO (HEI) To Report Earnings Tomorrow: Here Is What To Expect
Aerospace and defense company HEICO (NSYE:HEI) will be reporting earnings tomorrow after the bell. Here's what to expect. HEICO beat analysts' revenue expectations by 5.4% last quarter, reporting revenues of $1.03 billion, up 14.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' EPS estimates. Is HEICO a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting HEICO's revenue to grow 11% year on year to $1.06 billion, slowing from the 38.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HEICO has missed Wall Street's revenue estimates four times over the last two years. Looking at HEICO's peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Curtiss-Wright delivered year-on-year revenue growth of 13%, beating analysts' expectations by 5%, and Astronics reported revenues up 11.3%, topping estimates by 7.3%. Curtiss-Wright traded up 4.3% following the results while Astronics was also up 16.6%. Read our full analysis of Curtiss-Wright's results here and Astronics's results here. There has been positive sentiment among investors in the aerospace segment, with share prices up 7.9% on average over the last month. HEICO is up 8.3% during the same time and is heading into earnings with an average analyst price target of $269.69 (compared to the current share price of $268). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Are Strong Financial Prospects The Force That Is Driving The Momentum In Curtiss-Wright Corporation's NYSE:CW) Stock?
Curtiss-Wright (NYSE:CW) has had a great run on the share market with its stock up by a significant 36% over the last three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to Curtiss-Wright's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Curtiss-Wright is: 17% = US$430m ÷ US$2.6b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.17 in profit. See our latest analysis for Curtiss-Wright So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To begin with, Curtiss-Wright seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 12%. This probably laid the ground for Curtiss-Wright's moderate 13% net income growth seen over the past five years. As a next step, we compared Curtiss-Wright's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 13% in the same period. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Curtiss-Wright's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Curtiss-Wright's three-year median payout ratio to shareholders is 8.7% (implying that it retains 91% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business. Besides, Curtiss-Wright has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 5.7% over the next three years. Regardless, the ROE is not expected to change much for the company despite the lower expected payout ratio. In total, we are pretty happy with Curtiss-Wright's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
11-05-2025
- Business
- Yahoo
Returns On Capital At Curtiss-Wright (NYSE:CW) Have Stalled
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So, when we ran our eye over Curtiss-Wright's (NYSE:CW) trend of ROCE, we liked what we saw. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Curtiss-Wright, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = US$605m ÷ (US$5.0b - US$954m) (Based on the trailing twelve months to March 2025). Thus, Curtiss-Wright has an ROCE of 15%. In absolute terms, that's a satisfactory return, but compared to the Aerospace & Defense industry average of 10% it's much better. See our latest analysis for Curtiss-Wright In the above chart we have measured Curtiss-Wright's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Curtiss-Wright . The trend of ROCE doesn't stand out much, but returns on a whole are decent. Over the past five years, ROCE has remained relatively flat at around 15% and the business has deployed 33% more capital into its operations. Since 15% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. In the end, Curtiss-Wright has proven its ability to adequately reinvest capital at good rates of return. And long term investors would be thrilled with the 358% return they've received over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. While Curtiss-Wright doesn't shine too bright in this respect, it's still worth seeing if the company is trading at attractive prices. You can find that out with our on our platform. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
