Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at AAR (NYSE: AIR) and its peers.
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 in line.
Luckily, aerospace stocks have performed well with share prices up 14.2% on average since the latest earnings results.
AAR (NYSE: AIR)
The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services
AAR reported revenues of $678.2 million, up 19.5% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ Integrated Solutions revenue estimates.
"We delivered another strong quarter of significant year-over-year sales and earnings growth," said John M. Holmes, AAR's Chairman, President and Chief Executive Officer.
The stock is down 9.6% since reporting and currently trades at $61.75.
Is now the time to buy AAR? 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 an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 23.9% since reporting. It currently trades at $449.
Is now the time to buy Curtiss-Wright? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: AerSale (NASDAQ: ASLE)
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.
AerSale reported revenues of $65.78 million, down 27.4% year on year, falling short of analysts’ expectations by 26.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.2% since the results and currently trades at $6.03.
Read our full analysis of AerSale’s results here.
HEICO (NYSE: HEI)
Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
HEICO reported revenues of $1.10 billion, up 14.9% year on year. This print surpassed analysts’ expectations by 3.5%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
The stock is flat since reporting and currently trades at $273.90.
Read our full, actionable report on HEICO here, it’s free.
Textron (NYSE: TXT)
Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.31 billion, up 5.5% year on year. This number beat analysts’ expectations by 2.3%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ organic revenue estimates.
The stock is up 14.2% since reporting and currently trades at $75.50.
Read our full, actionable report on Textron here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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