Astronics Corp - Aggressive Growth
June 15 2011 - 8:00PM
Zacks
Astronics Corp (ATRO) analysts and management loved the
first quarter results. The outlook has been raised for the year and
pushed shares to a Zacks #1 Rank (Strong Buy).
Currently there should be solid double-digit growth for the
foreseeable future and the stock is regaining some momentum as
well.
Company Description
Astronics Corp makes lighting, electrical power and automated
test systems for the aerospace and defense industry.
Big Surprise
On May 4 the company reported quarterly results that showed an
18% increase in the top line, to just over $55 million. Combined
with an increasing gross margin and reduced SG&A percent of
sales, the income from operations swelled more than 33%.
Net income soared 53%, to $5.2 million. That works out to $0.45
per share, up 14 cents from last year and beating the Zacks
Consensus Estimate by 13 cents. Astronics has now topped forecasts
in 7 consecutive quarters.
Raising the Outlook
Management decided to raise its revenue outlook $5-$10 million
for the year. The hot start to the year as well as feedback from
customers and booking rates were cited for the increase.
Analysts are confident as well. Estimates are now averaging
$1.56 for 2011, up 13 cents. Next year's projections are averaging
$1.81, up 9 cents.
In 2010 the company made $1.32 per share, so the expected growth
rates are now 18% and 16%, respectively.
Top of the Industry
Astronics has an ROE of most than 22%, which is double the
industry average. They also have a net profit margin of 8.2%, 230
basis points above the norm for the peer group. So, it is no
surprise that they are the top ranked of 27 companies in the
industry.
Turning Around
Shares of ATRO are on the upswing recently and could be getting
a buy signal from the momentum-based MACD. That could lead to more
buying from swing traders and more gains to come.
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