Q2 Earnings Roundup: Boeing (NYSE:BA) And The Rest Of The Aerospace Segment

 

 

Looking back on aerospace stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Boeing (NYSE:BA) 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 14 aerospace stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, aerospace stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.

Boeing (NYSE:BA)
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Boeing reported revenues of $16.87 billion, down 14.6% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

"Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," said Dave Calhoun, Boeing president and chief executive officer.

Boeing delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 14.1% since reporting and currently trades at $160.59.

Read our full report on Boeing here, it’s free.

Best Q2: Ducommun (NYSE:DCO)
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 $197 million, up 5.2% year on year, outperforming analysts’ expectations by 1.1%. It was an exceptional quarter for the company with an impressive beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 9.7% since reporting. It currently trades at $65.08.

Is now the time to buy Ducommun? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: AerSale (NASDAQ:ASLE)
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft.

AerSale reported revenues of $77.1 million, up 11.2% year on year, falling short of analysts’ expectations by 12.7%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

AerSale had the weakest performance against analyst estimates in the group. As expected, the stock is down 8.6% since the results and currently trades at $5.09.

Read our full analysis of AerSale’s results here.

TransDigm (NYSE:TDG)
Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation.

TransDigm reported revenues of $2.05 billion, up 17.3% year on year, surpassing analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ organic revenue estimates.

The stock is up 10.2% since reporting and currently trades at $1,332.

Read our full, actionable report on TransDigm here, it’s free.

Rocket Lab (NASDAQ:RKLB)
Becoming the first 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 $106.3 million, up 71.2% year on year, in line with analysts’ expectations. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ earnings estimates but revenue guidance for next quarter missing analysts’ expectations.

Rocket Lab pulled off the fastest revenue growth among its peers. The stock is up 27.5% since reporting and currently trades at $6.08.