Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- Astronics Corporation (NASDAQ:ATRO) shares fell 11.5% after the aerospace and defense supplier reported second quarter earnings that beat estimates but revealed significant cost revisions in its Test Systems segment that masked underlying progress.
The company reported adjusted earnings of $0.38 per share for the second quarter, exceeding analyst expectations of $0.29 per share. Revenue reached $204.67 million, slightly above the consensus estimate of $203.94 million and up 3.3% YoY. Despite the earnings beat, investors focused on a $6.9 million negative impact from revised cost estimates for long-term mass transit contracts in the Test Systems segment, which significantly affected profitability.
"We had a very solid second quarter and demonstrated continued progress as revenue stabilizes above $200 million per quarter," said Peter J. Gundermann, Chairman, President and CEO. "We also took some actions that will improve our future earnings power."
The company’s Aerospace segment delivered record sales of $193.6 million, up 9.4% YoY, driven primarily by a 13.4% increase in Commercial Transport market sales. However, Test Systems segment sales declined by $10.1 million, with $6.4 million of the decrease attributed to the cost estimate revisions.
Astronics raised the lower end of its full-year revenue guidance to $840-860 million from the previous $820-860 million range, representing potential growth of 6.9% at the midpoint compared to 2024. The company ended the quarter with a backlog of $645.4 million, approximately 75% of which is expected to convert to revenue within the next twelve months.
"The first half of 2025 was very positive for our Company and we believe activity will accelerate as we move into the second half of the year," Gundermann added. "Our business continues to strengthen, including the efficiency of our work force and the dependability of our supply chain."
The company is also monitoring potential tariff impacts, estimating incremental annual material costs of $15-20 million before mitigation efforts, which include pass-through pricing and supply chain restructuring.
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