Winners And Losers Of Q4: AerSale (NASDAQ:ASLE) Vs The Rest Of The Aerospace Stocks

Let’s dig into the relative performance of AerSale (NASDAQ:ASLE) and its peers as we unravel the now-completed Q4 aerospace earnings season.

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 Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.6% since the latest earnings results.

AerSale (NASDAQ:ASLE)

Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft.

AerSale reported revenues of $94.74 million, flat year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.AerSale Total Revenue

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $7.02.

Is now the time to buy AerSale? Access our full analysis of the earnings results here, it’s free.

Best Q4: HEICO (NYSE:HEI)

Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

HEICO reported revenues of $1.03 billion, up 14.9% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.HEICO Total Revenue

The market seems happy with the results as the stock is up 8% since reporting. It currently trades at $246.

Is now the time to buy HEICO? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Boeing (NYSE:BA)

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

Boeing reported revenues of $15.24 billion, down 30.8% year on year, falling short of analysts’ expectations by 6.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

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Boeing delivered the slowest revenue growth in the group. As expected, the stock is down 7.4% since the results and currently trades at $162.27.

Read our full analysis of Boeing’s results here.

Howmet (NYSE:HWM)

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Howmet reported revenues of $1.89 billion, up 9.2% year on year. This number surpassed analysts’ expectations by 0.7%. Zooming out, it was a mixed quarter as it also produced EBITDA guidance for next quarter beating analysts’ expectations.

The stock is down 3.5% since reporting and currently trades at $123.64.

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

Astronics (NASDAQ:ATRO)

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

Astronics reported revenues of $208.5 million, up 6.8% year on year. This result beat analysts’ expectations by 7%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Astronics achieved the biggest analyst estimates beat among its peers. The stock is up 10% since reporting and currently trades at $21.98.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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