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Oct 01, 2022
Astronics Q3 2022 Earnings Report
Reported sales increase driven by higher demand in commercial aerospace and test systems, but margins were under pressure due to inflation and supply chain challenges.
Key Takeaways
Astronics Corporation reported Q3 2022 financial results with sales of $131.4 million, an 18% increase over the prior-year period. The operating loss was $14.3 million, including $4.6 million in atypical costs. Bookings totaled $184.2 million, up 20% over the prior-year period, resulting in a book-to-bill ratio of 1.40. Backlog increased 32% from year-end 2021 to a record $547.1 million, with aerospace backlog reaching a record $464.3 million.
Sales for the quarter were $131.4 million, up 18% over the prior-year period.
Operating loss was $14.3 million, including $4.6 million in atypical costs, a portion of which is expected to be recovered in the fourth quarter.
Bookings totaled $184.2 million, up 20% over the prior-year period; achieved book-to-bill ratio of 1.40.
Backlog increased 32% from year end 2021 to a record $547.1 million; Aerospace backlog reached a record $464.3 million
Astronics
Astronics
Astronics Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.comTest Systems Revenue
CapyFin.com Forward Guidance
The Company expects sales of $140 million to $150 million in the fourth quarter of 2022 and initial look at 2023 suggests sales of $640 million to $680 million.
Positive Outlook
- Revenue has been starting to ramp and we believe it will accelerate as we move forward.
- Expecting sales of $140 million to $150 million in the fourth quarter of 2022, an increase of 10%, or $14 million, at the midpoint over the trailing third quarter.
- Estimated 2022 sales to be up approximately 17% from last year’s revenue of $445 million.
- Initial look at 2023 suggests sales of $640 million to $680 million.
- Anticipate continued recovery over the course of 2023.
Challenges Ahead
- Disappointed with the lower sales level for the year than we had previously anticipated.
- Supply chain has been a challenge during the last year.
- Refinancing process has taken much longer than expected given delays with property appraisals as well as the many elements of the structure.
- Margins were under pressure in the quarter because of inflation and supply chain challenges that are widespread these days.
- Significant legal and customer accommodation expenses of $4 million, part of which we expect to recover.
Revenue & Expenses
Visualization of income flow from segment revenue to net income