Sunday, August 4, 2013

Why Astronics Shares Shot Up

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Astronics Corporation (NASDAQ: ATRO  ) were headed for the stars today, gaining 11% after a strong quarterly earnings report.

So what: The aerospace supplier said that sales increased 13.6% to $74 million, a new company record, and came in 3% ahead of estimates. Adjusted earnings per share also beat the Street's view, coming in at $0.49 vs. an estimated per-share profit of $0.43. The company's backlog was also slightly higher than in the previous quarter, and CEO Peter Gundermann said Astronics was tracking toward the high end of its previous guidance and will update its outlook in the second quarter. The revenue forecast remains at $280 million to $310 million, with nearly all of that coming from the aerospace segment.

Now what: For a modest earnings beat, the 10% jump may seem a little exaggerated, but the pieces seem to be coming together for Astronics to have a stellar 2013. Gundermann noted that sales were "strong across the majority of our markets and product lines." Combine that prospect with the promising guidance, which would seem to indicate that the second quarter has gotten off to a good start, and I wouldn't be surprised to see Astronics bump up its guidance in its next report. See what happens next by adding the company to your Watchlist here.

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