Aerospace and defense company Ducommun (NYSE: DCO) will be reporting results tomorrow before market open. Here’s what investors should know.
Ducommun beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $197.3 million, up 2.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Ducommun a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ducommun’s revenue to grow 1% year on year to $192.8 million, slowing from the 5.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ducommun has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Ducommun’s peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Boeing delivered year-on-year revenue growth of 17.7%, missing analysts’ expectations by 0.6%, and Textron reported revenues up 5.5%, topping estimates by 2.3%. Boeing traded up 8.5% following the results while Textron was also up 3.5%.
Read our full analysis of Boeing’s results here and Textron’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 13% on average over the last month. Ducommun is up 9.2% during the same time and is heading into earnings with an average analyst price target of $79.20 (compared to the current share price of $59).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
