Astronics Corporation (NASDAQ:ATRO) Analysts Are Pretty Bullish On The Stock After Recent Results
As you might know, Astronics Corporation (NASDAQ:ATRO) recently reported its full-year numbers. Revenue hit US$689m in line with forecasts, although the company reported a statutory loss per share of US$0.80 that was somewhat smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Astronics
Taking into account the latest results, the consensus forecast from Astronics' dual analysts is for revenues of US$772.0m in 2024. This reflects a decent 12% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Astronics forecast to report a statutory profit of US$0.45 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$755.5m and earnings per share (EPS) of US$0.70 in 2024. So it's pretty clear the analysts have mixed opinions on Astronics after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.
Curiously, the consensus price target rose 15% to US$23.50. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Astronics' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.2% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.5% annually. Not only are Astronics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Astronics. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Astronics going out as far as 2025, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Astronics (including 1 which doesn't sit too well with us) .
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This 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.
