Astronics (NASDAQ:ATRO) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Astronics (NASDAQ:ATRO) released its quarterly earnings data on Tuesday. The aerospace company reported $0.70 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.11, FiscalAI reports. The business had revenue of $259.96 million during the quarter, compared to analysts’ expectations of $245.30 million. Astronics had a net margin of 5.12% and a return on equity of 49.34%. The company’s quarterly revenue was up 46.9% on a year-over-year basis.

Here are the key takeaways from Astronics’ conference call:

• Astronics reported record second-quarter results, with revenue up 27% year over year to $260 million, adjusted EBITDA margin reaching a record 19.8%, and adjusted operating margin expanding to 16.6%.
• Bookings rose to an all-time high of $306 million, including a $27 million FLRAA V-280 development order and a $45 million U.S. Army radio-test production award; backlog also reached a record level.
• Management raised full-year 2026 revenue guidance to $1.02 billion-$1.04 billion, expects third-quarter sales of $265 million-$275 million, and anticipates further margin improvement as volume leverage, contract repricing, and the Army radio program ramp up.
• Results benefited from a $2 million tariff refund, while ongoing tariffs are costing roughly $3 million-$4 million per quarter before mitigation; future refunds of approximately $6 million-$8 million have uncertain timing.
• The company remains optimistic about longer-term LEO connectivity, eVTOL, drone, and FLRAA opportunities, but acknowledged near-term weakness in its roughly $60 million annualized GEO business and said emerging-aircraft programs are not materially included in 2026 guidance.

Astronics Stock Down 0.7%

ATRO stock opened at $74.91 on Wednesday. The company has a debt-to-equity ratio of 2.07, a current ratio of 2.97 and a quick ratio of 1.63. The stock has a market capitalization of $3.22 billion, a P/E ratio of 76.18 and a beta of 1.15. The business has a 50-day moving average of $74.07 and a 200-day moving average of $66.78. Astronics has a fifty-two week low of $25.87 and a fifty-two week high of $88.72.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ATRO. AQR Capital Management LLC lifted its position in Astronics by 20.4% during the 1st quarter. AQR Capital Management LLC now owns 112,210 shares of the aerospace company’s stock worth $2,712,000 after buying an additional 18,975 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Astronics by 6.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,491 shares of the aerospace company’s stock valued at $423,000 after acquiring an additional 1,069 shares during the last quarter. Millennium Management LLC increased its position in shares of Astronics by 80.1% in the first quarter. Millennium Management LLC now owns 746,956 shares of the aerospace company’s stock valued at $18,054,000 after acquiring an additional 332,133 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Astronics by 26.1% during the first quarter. Goldman Sachs Group Inc. now owns 222,486 shares of the aerospace company’s stock worth $5,377,000 after acquiring an additional 46,054 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Astronics by 22.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 71,791 shares of the aerospace company’s stock worth $1,735,000 after acquiring an additional 13,104 shares in the last quarter. Institutional investors own 56.68% of the company’s stock.

Key Astronics News

Here are the key news stories impacting Astronics this week:

• Positive Sentiment: Results beat estimates: Astronics reported revenue of approximately $260 million, up 27% year over year and above the roughly $245 million consensus estimate. Adjusted earnings were $0.70 per share, exceeding the $0.59 analyst forecast; another data source cited diluted EPS of $0.75, so investors should note the reporting discrepancy. Astronics Corporation Reports Record Operating Income on 27% Sales Growth for Second Quarter 2026
• Positive Sentiment: Profitability improved sharply: Record operating income reached $40.5 million, or 15.6% of sales, while net income rose substantially from the prior-year period. Aerospace sales reached a record $237.3 million, with a 20.3% segment operating margin.
• Positive Sentiment: Strong forward indicators: Quarterly bookings reached a record $306.2 million and backlog stood at $780.6 million, supporting visibility into future sales. Management raised 2026 revenue guidance to $1.02 billion-$1.04 billion, above the approximately $985 million consensus, and issued third-quarter revenue guidance of $265 million-$275 million versus an estimated $252.3 million.
• Positive Sentiment: Cash generation remained positive: Operating cash flow was approximately $30.1 million during the quarter, compared with $5.7 million of capital spending. Astronics Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Valuation remains demanding: Following the advance, ATRO trades at a high earnings multiple, while its debt-to-equity ratio is elevated. Strong execution and sustained aerospace demand may therefore be necessary to justify the stock’s valuation.

Analysts Set New Price Targets

ATRO has been the topic of several recent analyst reports. Truist Financial upgraded Astronics to a “strong-buy” rating in a report on Monday, May 4th. TD Cowen increased their target price on Astronics from $70.83 to $83.33 and gave the stock a “buy” rating in a research note on Thursday, May 28th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Astronics in a research note on Friday, July 17th. Zacks Research upgraded shares of Astronics from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Finally, Wall Street Zen downgraded shares of Astronics from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Three analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $74.17.

Astronics Company Profile

Astronics Corporation (NASDAQ: ATRO) is a global leader in the design and manufacture of advanced technologies primarily for the aerospace, defense and semiconductor industries. Headquartered in East Aurora, New York, the company was founded in 1968 and has grown through a combination of internal development and strategic acquisitions. Astronics operates multiple business units focused on power conversion, distribution and control; cabin electronics and connectivity; aircraft lighting and safety solutions; and automated test systems.

The company’s aerospace products include onboard power generation and management systems, in-flight entertainment and connectivity hardware, LED and fluorescent lighting for aircraft cabins and cockpits, and safety equipment such as escape slide power units.