Aerospace Stocks Q3 Recap: Benchmarking Rocket Lab (NASDAQ:RKLB)

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the aerospace stocks, including Rocket Lab and its peers.

Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.

The 15 aerospace stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 0.8% below.

Luckily, aerospace stocks have performed well with share prices up 25.4% on average since the latest earnings results.

Rocket Lab

Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab offers rockets designed for launching small satellites.

Rocket Lab reported revenues of $155.1 million, up 48% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.

Rocket Lab founder and CEO, Sir Peter Beck, said: “This past quarter we’ve once again delivered record revenue of $155m at record GAAP gross margin of 37%, and a new annual launch record is just days away. With progress across our major space systems programs, record backlog of contracts for our launch services business, and well-timed, strategic M&A in growth areas that are well-aligned with next-generation defense programs like Golden Dome and the Space Development Agency’s future constellations, our momentum is strong and we’re poised to deliver long-term exciting growth.”

Interestingly, the stock is up 61.6% since reporting and currently trades at $84.07.

Best Q3: AAR

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR is a provider of aircraft maintenance services

AAR reported revenues of $795.3 million, up 15.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 18.8% since reporting. It currently trades at $107.

Weakest Q3: Redwire

Based in Jacksonville, Florida, Redwire is a provider of systems and components used in space infrastructure.

Redwire reported revenues of $103.4 million, up 50.7% year on year, falling short of analysts’ expectations by 22.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Interestingly, the stock is up 41.9% since the results and currently trades at $10.49.

Read our full analysis of Redwire’s results here.

Astronics

Integrating power outlets into many Boeing aircraft, Astronics is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Astronics reported revenues of $211.4 million, up 3.8% year on year. This print was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is up 58.4% since reporting and currently trades at $76.03.

Read our full, actionable report on Astronics here, it’s free.

Boeing

One of the companies that forms a duopoly in the commercial aircraft market, Boeing develops, manufactures, and services commercial airplanes, defense products, and space systems.

Boeing reported revenues of $23.27 billion, up 30.4% year on year. This number beat analysts’ expectations by 6.3%. Aside from that, it was a softer quarter as it produced a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Boeing scored the biggest analyst estimates beat among its peers. The stock is up 12.2% since reporting and currently trades at $250.39.

Read our full, actionable report on Boeing here, it’s free.