Astronics Corp (ATRO) Provides Surprising 2016 Revenue Guidance Following In-Line 3Q; Canaccord Genuity Reiterates Buy

Canaccord Genuity maintained a Buy rating on Astronics (NASDAQ: ATRO), and cut the price target to $56.00 (from $60.00), following the company's 3Q earnings report. Astronics (ATRO) reported EPS of $0.94 and revenues of $200.1M, in-line with consensus. Most of the growth in the aerospace segment came from increased sales in Electrical Power & Motion, up 15%, with sales of in-seat power providing the bulk of this growth. The company provided initial 2016 revenue guidance of sales in the $690M to $750M range, which implies up 6%-10% in the Aerospace segment

Analyst Ken Herbert commented, "Revenues at $200.1M were basically in line with guidance, but the better than expected earnings were driven by margins in both the aerospace and test businesses. In a surprise move, the company provided initial 2016 revenue guidance of sales in the $690M to $750M range, which implies up 6%-10% in the Aerospace segment, but down ~10% in the Test segment. We like the confidence in the initial 2016 outlook, and we believe it does help to overcome some concerns in the test business, even with aerospace growth again in the high single digits."

For an analyst ratings summary and ratings history on Astronics click here. For more ratings news on Astronics click here.

Shares of Astronics closed at $42.48 yesterday.

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