New Post has been published on Stock Markets Daily
New Post has been published on http://www.stockmarketsdaily.com/astronics-earnings-analysis-will-market-think-nasdaqatro/9763/
Astronics Earnings Analysis: What Will the Market Think (NASDAQ:ATRO)
(adsbygoogle = window.adsbygoogle || []).push();
Astronics (NASDAQ:ATRO) has beaten Wall street earnings estimates reporting earnings of $0.81 versus a consensus analyst estimate of $0.64 for the fourth quarter of 2014. This represents a 17 cent surprise upside. At the same time revenue was up 57.5% of year on year or $8.55 million to report revenue of $166.08 for the quarter.
Astronics (NASDAQ:ATRO) is a leading provider of technologies for the global aerospace, defense, electronics and semiconductor industries, also reported 4th quarter bookings of $235 million and backlogs of $371 million. This interestingly is new record high levels for ATRO.
Stock Performance: Click here for a free comprehensive Trend Analysis Report
For the full year it is heartening to see that Astronics has increased revenue by 94.5% to $661 million from the previous financial year and in doing so has managed to increase cost of goods sold and overhead expenses by a smaller amount. This is very healthy to the company’s earnings.
Of particular positive note, the aerospace segment had strong organic growth of 16.8%. ATRO is forecasting revenues for 2015 of between $680 million and $740 million, potentially some strong upside on the upper end compared to the $661 million in revenues recorded for 2014. Based on a net income margin of 8.5% in 2014 this would suggest earnings of between $57.8 million and $62.9 million.
This suggests a forward P/E ratio for Astronics (NASDAQ:ATRO) of between 21.3 and 19.6. Wall Street had ATRO trading on a forward P/E of 19.34, meaning that ATRO shares look fairly priced at present. We would however expect that margins will be higher than 2014, therefore it is likely that earnings will be higher than estimated by our quick and dirty analysis above and the stock price may jump a bit.
Astronics (NASDAQ:ATRO) shares closed yesterday at $57.43 after moving upward 0.93%. ATRO in the last 52 weeks has traded at a lowest price of $41.31 and a highest price of $60.73.
