Astronics Corp (ATRO) Tops Q3 EPS by 7c, Offers FY Outlook
Astronics Corp (NASDAQ: ATRO) reported Q3 EPS of ($0.17), $0.07 better than the analyst estimate of ($0.24). Revenue for the quarter came in at $106.5 million versus the consensus estimate of $109.58 million.
Astronics Corp sees FY2020 revenue at or slightly above $500 million, versus the consensus of $506.3 million.
- As discussed previously, the Company believes that, given its assumptions on the economic impacts of COVID-19 on its revenue streams in its Aerospace business and its current backlog, consolidated revenue should be at, or slightly above, $500 million for 2020. Given the fluidity of the pandemic as well as government responses, other outcomes, both positive and negative, are possible. Management expects the Company to be cash positive for the year at this revenue level with adjusted EBITDA margins for the year of approximately 5% to 7%. The Company plans to use excess free cash flow from operations to reduce outstanding debt.
- Capital expenditures for 2020 are expected to be approximately $8 million. The reduction reflects the change in tooling and equipment capacity requirements for certain programs that were either postponed or cancelled, as well as the deferral or cancellation of discretionary investments.
- Mr. Gundermann commented, “It’s obvious we will continue to deal with the pandemic for the remainder of 2020. We are hopeful for a turnaround in our core aerospace markets through 2021. Beyond the pandemic, we believe we are very well positioned to benefit from that improvement when it occurs given the strength of our franchise, our unique leadership position with inflight entertainment and the importance of our offerings for inflight connectivity. Our objective, in the meantime, is to remain cash positive and to continue to develop the products and technologies our customers will require in the future. We are positioning to emerge from these times a better Company.”
For earnings history and earnings-related data on Astronics Corp (ATRO) click here.