Astronics Q2 2024 Earnings Report
Key Takeaways
Astronics Corporation reported a 14% increase in sales to $198.1 million and improved profitability in Q2 2024. Operating income increased to $7.6 million, and net income was $1.5 million, or $0.04 per diluted share. The company's bookings reached a post-pandemic high, resulting in a record backlog of $633.4 million.
Sales grew 14% to $198.1 million.
Operating income increased to $7.6 million, or 3.8% of sales.
Net income for the quarter was $1.5 million, or $0.04 per diluted share.
Bookings were $219.0 million, driving a record backlog of $633.4 million with book to bill ratio of 1.11x.
Astronics
Astronics
Astronics Revenue by Segment
Forward Guidance
The Company is increasing its 2024 revenue guidance to $780 million to $800 million. The midpoint of this range would be a 15% increase over 2023 sales. The Company expects third quarter revenue to be in the range of $195 million to $205 million.
Positive Outlook
- First half 2024 sales up 15.8%.
- Strong margin improvement.
- Innovative products are valued by customers.
- Executing on key wins after significant investments of time and money over the last few years.
- Regaining operational stride which allows continued expansion of margin profile and earnings.
Challenges Ahead
- Risks associated with OEM production rates.
- Revision of estimated costs to complete certain long-term mass transit contracts in the Test Systems segment negatively impacted consolidated sales and operating profit by $3.5 million.
- Operating profit in the second quarter of 2024 was impacted by a $3.0 million increase in litigation-related legal expenses and reserve adjustments related to an ongoing patent dispute.
- Operating profit in the second quarter of 2024 was impacted by $2.9 million related to the resumption of the Company’s incentive programs.
- Third quarter 2024 expenses will include refinancing-related fees, the call premium on the previous term loan and the write-off of deferred financing costs related to the previous financing. These expenses in total are estimated to be $7.5 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income