The aerospace firm’s fourth quarter sales rose 6.8% to $208.5 million compared to the year-ago quarter and exceeded Wall Street’s expectations.
Astronics Corp (ATRO) stock gained 10.5% after the company’s fourth-quarter earnings topped Wall Street’s estimates.
The aerospace electronics firm posted adjusted net income of $16.8 million, or $0.48 per share, while analysts on average expected the company to post $0.17 per share, according to FinChat data.
The company’s fourth quarter sales rose 6.8% to $208.5 million compared to the year-ago quarter and exceeded Wall Street’s expectations.
However, due to debt extinguishment commitments, it reported a net loss of $2.8 million, or $0.08 per share, compared with a net income of $7.0 million, or $0.20 per share, in the prior-year period.
It also included a $4.8 million reserve regarding a patent infringement dispute with Lufthansa. In February, a UK court ruled Astronics to pay about $11.9 million as a damage award for infringement.
Sales in the aerospace segment jumped 11.7% to $188.5 million, driven by a 13.5% increase in Commercial Transport sales.
The company attributed the rise to increased airline demand for cabin power and inflight entertainment & connectivity products, which was somewhat offset by lower sales of commercial lighting and safety products resulting from the Boeing strike.
However, its Test Systems segment sales declined by $6.6 million to $20 million during the fourth quarter.
The company said backlog at the end of the quarter was $599.2 million, the highest for any year-end.
Astronics expects 2025 revenue to be about $820 million to $860 million. Wall Street expects it to post $842.5 million.
“We expect growth to moderate in 2025, but margin improvement to continue,” CEO Peter Gundermann said.
Retail sentiment on Stocktwits remained in the ‘bearish’ (39/100) territory, while retail chatter was ‘low.’
Over the past year, Astronics shares have gained 4.7%.
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