Astronics Q1 income triples
Shares of East Aurora, N.Y.-based Astronics Corp. (Nasdaq: ATRO) have gained strength after news this morning that the supplier of lighting, electronics and power distribution systems for the global aerospace industry tripled its net income.
Net income for the first quarter ended March 31 was $4.7 million, or $0.56 per share, up a whopping 362%, compared with net income of $1.3 million, or $0.16 per share, in the first quarter of 2006.
“As anticipated, we had a very strong first quarter from both a sales and earnings perspective,” Astronics President and CEO Peter J. Gundermann said. “We continue to see robust demand in all areas of the aerospace industry. Orders from the airlines around the world remain at a solid, strong pace as they upgrade their fleets to enhance their passengers’ experience by offering in-seat power and in-flight entertainment systems.”
Sales increased 70% to $42.9 million, compared with $25.3 million in the same period a year earlier. Astronics said that sales growth was driven by rising demand for the company’s cabin electronics products, which were supplied primarily to the global commercial transport market. Sales for the line of cabin electronics products, which provide the power than runs in-flight entertainment systems, were $22.5 million, an increase of 161% from $8.6 million a year earlier.
The gross margin for quarter was 27.2%, an improvement of from a gross margin of 21.4% during the first three months of 2006.
Looking ahead, Peter Gundermann said revenue will not maintain the same pace going into the remaining three quarters. However, Gundermann said Astronics is ramping up several new business jet programs and expects a strong year. The company’s revenue guidance remains at between $135 and $140 million. That’s above analysts’ projected revenue of $133.49 million.
At 1:07 p.m. ET shares were up $3.25, or 16%, to $24.00. The 52-week high is $21.916, achieved on Feb. 21. The 52-week low of $11.00 was set on May 30, 2006.
