Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Redwire (NYSE:RDW) 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 13 aerospace stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2% above.

Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results.

Redwire (NYSE:RDW)

Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.

Redwire reported revenues of $68.64 million, up 9.6% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

“Mergers and acquisitions are a core strength of Redwire and important to our growth strategy. During the third quarter, Redwire returned to our M&A roots by closing on the purchase of Hera Systems - our tenth acquisition. Hera Systems brings a highly competent team and two new platforms to Redwire’s spacecraft portfolio, expanding our ability to execute larger missions, particularly in our national security segment,” stated Peter Cannito, Chairman and Chief Executive Officer of Redwire.

Interestingly, the stock is up 54.1% since reporting and currently trades at $13.25.

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

Best Q3: Ducommun (NYSE:DCO)

California’s oldest company, Ducommun (NYSE:DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.

Ducommun reported revenues of $201.4 million, up 2.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $66.24.

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

Weakest Q3: Textron (NYSE:TXT)

Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.

Textron reported revenues of $3.43 billion, up 2.5% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 1.6% since the results and currently trades at $85.46.

Read our full analysis of Textron’s results here.

Hexcel (NYSE:HXL)

Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE:HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.

Hexcel reported revenues of $456.5 million, up 8.8% year on year. This print lagged analysts' expectations by 1%. It was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.

Hexcel pulled off the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $64.

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

Rocket Lab (NASDAQ:RKLB)

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

Rocket Lab reported revenues of $104.8 million, up 54.9% year on year. This result beat analysts’ expectations by 2.4%. Overall, it was a stunning quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations.

Rocket Lab delivered the fastest revenue growth among its peers. The stock is up 68.8% since reporting and currently trades at $24.75.

Read our full, actionable report on Rocket Lab 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 US 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. Said differently, there's still much uncertainty around 2025.

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

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