Astronics Q2 earnings to test margins after guidance hike

Astronics is set to release its second-quarter earnings on Tuesday, with investors focusing on margin performance after the company raised its full-year guidance in May.

The Buffalo, New York-based supplier of aviation systems and components has guided for adjusted earnings per share between $2.30 and $2.50 for fiscal 2024, up from its prior range of $2.10 to $2.30. The revision followed stronger-than-expected demand in its core aerospace and defense markets, as well as improved operational efficiency.

Analysts expect the company to report adjusted EPS of $0.60 for Q2, according to a Refinitiv consensus estimate. Revenue is projected to rise 5% year-over-year to $215 million, driven by increased deliveries in its commercial aerospace segment. The company’s backlog remains robust at approximately $1.2 billion, supporting near-term growth expectations.

Margin trends will be closely watched, particularly in light of rising material and labor costs. Astronics has highlighted efforts to mitigate inflationary pressures through pricing actions and supply chain optimization. Gross margins expanded to 28.5% in Q1, up from 27.1% a year earlier, but investors will assess whether this momentum can be sustained.

The company’s defense segment, which accounts for roughly 40% of revenue, continues to benefit from sustained defense spending, while its commercial aerospace unit faces ongoing recovery in air travel demand. Astronics has also emphasized its role in the F-35 program, a key growth driver.

Management is expected to provide updated commentary on supply chain dynamics, pricing strategies, and segment-specific performance during the earnings call. The report will be released after market close, with the call scheduled for 10 a.m. ET on Wednesday.