Reasons to Add Astronics (ATRO) to Your Portfolio Right Now
Astronics Corp. ATRO is well-positioned to benefit from the solid backlog and systematic capital expenditure over the years. The company also enjoys a stable financial position.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for Astronics’ 2024 earnings per share is pegged at 71 cents, representing a solid improvement from the 2023 reported loss figure of 80 cents.
The Zacks Consensus Estimate for ATRO’s 2024 sales is $769 million, indicating a year-over-year improvement of 11.6%.
Debt Position
Astronics has a current ratio of 2.72, better than the industry’s average of 1.55. The company’s current ratio being more than 1, implies that it has the financial capability to pay its short-term debt obligations.
The total debt-to-capital of ATRO is 40.27%, better than the 54.47% registered by the industry. This indicates that the company has less debt than its peers, which is a positive sign.
Strong Order Wins
Astronics’ solid order activities resulted in a backlog of $592.3 million at the end of the fourth quarter of 2023. Out of this, the company expects to ship approximately $526.5 million in 2024.
The company’s Aerospace segment achieved its eighth consecutive record backlog of $517.2 million. The segment witnessed a 31% year-over-year improvement in its sales due to higher airline spending and increased OEM build rates. Such solid backlog and order activities reflect the solid demand that this company’s products enjoy.
Capital Expenditure
Astronics had capital expenditure totaling $7.6 million during 2023, which was at par with 2022. Out of this, $5 million was dedicated to the Aerospace segment.
The company now expects capital expenditure in the range of $17-$22 million for 2024.
Price Performance
In the past year, shares of ATRO have rallied 41.7% compared with the industry’s 33.7% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Textron Inc. TXT, Leidos Holdings Inc. LDOS and Safran SA SAFRY, each carrying a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Textron boasts a long-term (three-to five-years) earnings growth rate of 10.1%. The Zacks Consensus Estimate for 2024 sales is pegged at $14.64 billion, implying a year-over-year improvement of 7%.
Leidos boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2024 sales is pegged at $15.97 billion, implying a year-over-year improvement of 3.5%.
Safran boasts a long-term earnings growth rate of 30.2%. The Zacks Consensus Estimate for 2024 sales is pegged at $29.40 billion, implying a year-over-year improvement of 42.9%.
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Textron Inc. (TXT) : Free Stock Analysis Report
Astronics Corporation (ATRO) : Free Stock Analysis Report
Safran SA (SAFRY) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
