Astronics Corp (ATRO) just jumped into a new multi-year high, riding a wave of enthusiasm over strong Q3 results that included a 33% earnings surprise. With a 12% growth projection, this Zacks #1 Rank stock is heating up with momentum.
Company Description
Astronics Corp, through its subsidiaries, designs and manufactures lighting and test systems for the aerospace and defense industries worldwide. The company was founded in 1968 and has a market cap of $421 million.
Astronics began trending higher with the market last fall, but shares got an extra boost in early November after the company reported strong Q3 results that included a 33% earnings surprise.
Third-Quarter Results
Revenue for the period was up 13% from last year to $56 million. Earnings also came in strong at 52 cents, 33% ahead of the Zacks Consensus, where in spite of a small miss last quarter, the company has an average earnings surprise of 22% over the last four quarters.
Financial Profile
Astronics ended the quarter with its healthy financial profile intact, with cash and short-term investments of $21 million against total debt of $35 million.
Estimates
We did see a little bit of movement in estimates off the good quarter, with the current year adding 4 cents in the last few months to $1.64. The next-year estimate is up 3 cents in the same time to $1.83, a solid 12% growth projection.
Valuation
With a PEG ratio of 1.58, ATRO trades at a premium to the benchmark of 1 for value.
12-Month Chart
On the chart, shares have been rallying since rallying since last October, recently jumping into a new multi-year high. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
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