Unpacking Q3 Earnings: Curtiss-Wright (NYSE:CW) In The Context Of Other Aerospace Stocks
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the aerospace stocks, including Curtiss-Wright (NYSE:CW) and its peers.
Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.
The 12 aerospace stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2% above.
In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.
Curtiss-Wright (NYSE:CW)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Curtiss-Wright reported revenues of $798.9 million, up 10.3% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
"Curtiss-Wright achieved strong third quarter results, highlighted by mid-teens revenue growth in our A&D end markets, a better-than-expected operational performance in our Defense Electronics segment and a 17% year-over-year increase in Adjusted diluted EPS," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.
Curtiss-Wright Total Revenue
Curtiss-Wright achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.1% since reporting and currently trades at $364.
California’s oldest company, Ducommun (NYSE:DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Ducommun reported revenues of $201.4 million, up 2.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Ducommun Total Revenue
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.02.
Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.43 billion, up 2.5% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly.
As expected, the stock is down 5.6% since the results and currently trades at $82.02.
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.
Rocket Lab reported revenues of $104.8 million, up 54.9% year on year. This result surpassed analysts’ expectations by 2.4%. It was an exceptional quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Rocket Lab scored the fastest revenue growth among its peers. The stock is up 39.9% since reporting and currently trades at $20.51.
Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.
Redwire reported revenues of $68.64 million, up 9.6% year on year. This print missed analysts’ expectations by 2.8%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.
The stock is up 38.4% since reporting and currently trades at $11.90.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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