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Bull Of The Day: Astronics (ATRO)

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Astronics (ATRO - Free Report) is a Zacks Rank #1 (Strong Buy) that has a C for Value and a A for Growth.  After a massive beat, shares launched higher on expectations of higher earnings.  The recent tariff tantrum has brought the price back down, but this stock has resisted the urge to purge investors as the story is compelling.  Let’s explore more about why this stock is the Bull of the Day.

Description                      

Astronics Corp. engages in the provision of electrical power generation and distribution systems. It includes motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification, and automated test systems. It operates through the Aerospace and Test Systems segments. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, develops, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications. The firm's products and solutions include Aircraft Data Systems, Aircraft Electrical Power Systems, Airfield Lighting, Custom Design & Manufacturing, Emergency Systems, Enhanced Vision Systems, IFC Antennas and Radome Systems, Inflight Entertainment System Hardware, Interiors & Structures, Lighting Systems, Seat Actuation Systems, Simulation & Training, Systems Certification, Test & Measurement and VIP IFEC & CMS Systems. The company was founded on December 5th, 1968 and is headquartered in East Aurora, NY.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

Astronics (ATRO - Free Report) has posted two consecutive beats of the Zacks Consensus Estimate after posting two consecutive misses.  The takeaway from the earnings history is that the company gone from losing $0.09 per share four quarters ago to making $0.48 in the most recent quarter.

The most recent earnings print saw the company post $0.48 when the consensus was at $0.21.  That 27 cent beats translates into a positive earnings surprise of 128%

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates are moving higher for Astronics (ATRO - Free Report) .

This quarter has moved to $0.27, up from $0.21 over the last 60 days.

Next quarter has seen a smaller increase, moving from $0.28 to $0.31 over the same time period.

The full year 2025 has seen a big move, going from $1.10 to $1.29 over the last 60 days.

2026 saw a big move higher as well, going from $1.34 to $1.81 over the same period.

Growth

I see revenue in 2025 will come in around $830M which will end up being growth of about 4.3%.

Next year analysts are calling for sales of just over $900M which would be good for growth of 8.9%.

Accelerating revenue growth is a critical aspect to focus on, and ATRO has it.

Valuation

The forward PE of 16.6x is below the market multiple of 18x and well below the industry average of 25x.  Price to book comes in at 2.95x which is below the 3x level that will keep the value conscious interested in this stock.  Price to sales comes in just under 1x at 0.95x and implies that the market is not fully rewarding the company for every incremental dollar in sales that is generated.  Operating Margins have increased over the last couple of quarters moving from 2.24% to 3.44%.


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