Astronics Corporation (NASDAQ:ATRO) Releases Strong Fourth Quarter Numbers, Keeps Forward Guidance

Astronics Corporation (NASDAQ:ATRO) released their fourth quarter numbers and showed strong results for the quarter. Revenue came in at $166.1 million and that topped the number from the same period last year by 57%. Estimates were for the company to show $157.2 million on the top-line number. They earned 81 cents per share which also topped analysts’ estimates by a solid 16 cents. Over all it was a strong showing for the company and created solid momentum going forward.

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The strong number was bolstered by incremental sales from business acquisitions. Organic sales grew to $128 million and test systems contributed another $37.5 million. This was along with the aerospace division adding another $128 million.

Strong Across The Board

The 4Q2014 included $43.7 million sales in incremental sales for acquired businesses. While Organic sales increased 16.1%. Aerospace segment sales increased to $128.6 million an increment of $25.9 million and Test Systems segment sales increased to $37.5 million, representing an increment of $34.7 million. Margins strengthened to 25% as compared to the same quarter last year of 23%. The company used inventory control measures for the new acquisitions to help offset higher engineering and development costs.

Strong Products

Astronics supplies products to the aerospace, defense and semiconductor industries. They develop and build electric powered generation and distribution systems. They provide innovative solutions and generate revenue through their wholly-owned subsidiaries. They recently acquired Armstrong Aerospace for $52 million in cash. Armstrong provides engineering and design solutions and also provides certifications. They employed 81 people and generated revenue of $27 million in 2014. They specialize in connectivity in-flight entertainment and power sources. Part of the higher margins Astronics Corporation (NASDAQ:ATRO) achieved was due to strong inventory placement in the Armstrong purchase. The deal was completed in January of this year.

Technicals

The stock broke out to all-time highs and needs to consolidate a little before pushing higher. The chart is very healthy and all indicators remain bullish. The stock has strong support at $57.50 so any pull back should be light.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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