Astronics Corporation

HEICO is set to report its second-quarter earnings this Tuesday after market hours, with analysts expecting revenue to grow 18% year on year. The aerospace and defense company beat revenue expectations last quarter, reporting $1.38 billion, up 25.3% year on year, along with solid beats on EBITDA and EPS estimates. Analysts have generally reconfirmed their estimates over the last 30 days, though HEICO has missed Wall Street's revenue estimates multiple times over the last two years. Peers Astronics and ATI have already reported Q2 results, with Astronics delivering 27% year-on-year revenue growth and ATI reporting a 10.6% increase, both beating expectations. HEICO's stock price was unchanged over the last month, and it heads into earnings with an average analyst price target of $389.26 compared to the current share price of $355.51.

Boeing reported second-quarter revenue of $24.56 billion, up 8% year over year and 1.7% above analyst expectations, though earnings per share fell significantly short of estimates. The company's stock has risen 7.2% since the report and currently trades at $226.65. Among the 14 aerospace stocks tracked, second-quarter revenue beat consensus by 1.7% on average, and next-quarter revenue guidance came in 5.5% above expectations. Astronics posted the strongest results with revenue up 27% and a 23.8% stock gain, while AerSale was the weakest with revenue down 33.9% and a 6.3% stock decline.

Rocket Lab reported second-quarter revenue of $234.1 million, up 62% year over year and 0.9% above analyst expectations. The company also beat EPS estimates and issued next-quarter EBITDA guidance above consensus, scoring the highest guidance raise among the 14 aerospace stocks tracked. Astronics posted the best quarter with revenue of $260 million, up 27% and 6% above estimates, while AerSale was the weakest with revenue down 33.9% to $70.93 million, missing by 12.7%. TransDigm revenue rose 22.5% to $2.74 billion, and Redwire revenue jumped 89.6% to $117.1 million, the fastest growth in the group.

Curtiss-Wright reported second-quarter revenue of $924 million, up 5.4% year over year, in line with analyst expectations but with a beat on earnings per share. The stock fell 8% after the results and now trades at $688.63. Among the 14 aerospace stocks tracked, the group beat revenue consensus by 1.7% and guided next quarter 5.5% above expectations. Astronics was the best performer with revenue up 27% to $260 million and a 24.6% stock gain, while AerSale was the weakest with revenue down 33.9% to $70.93 million and a 9.2% stock decline.

Astronics Corporation stock surged 15.8% through 11:30 a.m. ET on Wednesday after the aerospace and defense company beat analyst forecasts for second-quarter earnings. Wall Street expected earnings of $0.54 per share on $245.8 million in quarterly sales, but Astronics reported $0.70 per share on sales of $260 million. Sales grew 27% year over year, with aerospace sales making up more than 91% of total sales at operating margins of 20.3%. The company guided for $265 million to $275 million in third-quarter sales and more than $1 billion in total sales through year-end, with backlog at $780.6 million and a book-to-bill ratio of nearly 1.2. Management expects positive free cash flow by the end of 2026, though the stock trades at more than 72 times free cash flow after the spike.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list today. ORIX Corporation saw its current-year earnings consensus estimate increase 55.7 percent over the last 60 days. NVIDIA Corporation's estimate rose 11 percent, Astronics Corporation's increased 18.6 percent, Fluence Energy Incorporated's climbed 18.2 percent, and AMC Entertainment Holdings Incorporated's estimate grew 29 percent over the same period.

Vertical Aerospace has signed a long-term agreement with Astronics for low-voltage power distribution systems for its Valo eVTOL aircraft, de-risking its supply chain as it moves toward production. The UK-based company already has supply deals with Honeywell for flight control and management systems and Hyundai WIA for landing gear. Vertical Aerospace holds 1,500 preorders for the Valo but is not expected to generate earnings until 2032, according to S&P Global Market Intelligence consensus. The company has access to up to $850 million in financing through a package with Yorkville Advisors Global, though future equity issuance is projected to dilute the share count from 157 million in 2026 to 373 million by 2032.

StockStory highlights Astronics and BGC Group as small-cap stocks to own for decades, while Impinj faces headwinds. Astronics, a provider of aerospace and defense technologies, achieved 14.5% annual revenue growth over the last five years, and additional sales over the last two years increased its profitability as the 349% annual growth in its earnings per share outpaced its revenue. BGC Group, a global brokerage and financial technology platform, posted 24.8% annual revenue growth over the last two years and earnings per share compounded at 24.6% annually. In contrast, Impinj, a maker of RFID hardware and software, is expected to see sales growth of just 9.3% next year, with persistent operating margin losses and negative returns on capital.

Astronics Corporation has been selected to provide the low-voltage power distribution system for Vertical Aerospace’s Valo eVTOL aircraft under a long-term agreement. The company will supply hardware for power conversion and distribution, transforming high-voltage power from the propulsion architecture into low-voltage power for avionics, flight controls, and other vital systems. Astronics hardware is already being used in the piloted flight test aircraft, having played an important role during the prototype stage. The stock holds a Strong Buy rating with an average upside potential of 19% as of June 29, and 42 hedge funds held a stake in the company as of the first quarter of 2026.

Analysts see a 21% upside potential for Astronics Corporation, with the stock rated a Strong Buy as of June 24. TD Cowen analyst Gautam Khanna raised the price target to $100 from $85 and maintained a Buy rating after the company received a $44.7 million purchase order from the Army for the TS-4549/T Radio Test Sets Program. The order initiates full-rate production under an existing $215 million IDIQ contract, of which $145 million remains. Astronics reported first-quarter 2026 sales of $230.6 million, up 12% year-over-year, with net income per diluted share of $0.67, and ended the quarter with a record backlog of $734.3 million.

StockStory named Crown Holdings as an industrials stock to sell, while highlighting Distribution Solutions and Astronics as resilient picks. Crown Holdings, with a market cap of $10.79 billion, saw annual revenue growth of just 1.4% over five years and EPS growth of 3.8% annually, lagging sector averages. Distribution Solutions posted 38.1% annual revenue growth over four years and expanded its free cash flow margin by 5.1 percentage points over five years. Astronics achieved 14.5% annual revenue growth over five years and a 349% annual EPS growth over the past two years, driven by profitable incremental sales and growing returns on capital.

Astronics Corporation is seeing a clear growth acceleration and margin recovery, with first quarter 2026 sales of $230.6 million, up 12% year over year, and adjusted EBITDA margins expanding to 16.4%. The company reported record bookings of $290.4 million and a record backlog of $734.3 million, reinforcing visibility into sustained growth. Management highlighted multiple catalysts, including rapid seat motion growth expected to exceed 100% in 2026 and a potentially transformative U.S. Army radio test program that could contribute approximately $20 million in second-half 2026 revenue and $40 to $50 million annually thereafter. The investment case is further strengthened by a broader aerospace recovery cycle and a strategic shift toward higher-value, recurring aftermarket revenue streams.