Ducommun Q3 revenue beats on commercial aerospace growth
Overview
US aerospace and defense maker's Q3 revenue rose 6% yr/yr, beating analyst expectations
Adjusted EPS for Q3 was $1.21
Company achieved record gross margin of 28.9%, up 140 bps yr/yr
Outlook
Company targets annual revenue of $1.6-$1.7 bln under VISION 2032 plan
Company aims for Adjusted EBITDA margin of 23% by 2032
Company expects continued momentum in defense business in 2027
Result Drivers
COMMERCIAL AEROSPACE GROWTH - Revenue growth was led by higher sales in commercial aerospace, particularly large aircraft, business jets and rotary-wing platforms
MARGIN EXPANSION - Higher manufacturing volume, facility consolidation synergies and strategic pricing contributed to gross margin improvement, partly offset by unfavorable product mix
DEFENSE BOOKINGS - Strong defense bookings driven by missile and fixed-wing aircraft platforms, offset by timing-related weakness in ground vehicles and rotary-wing aircraft
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $227 mln | $221.93 mln (6 Analysts) |
Q3 Adjusted Net Income | $18.80 mln | ||
Q3 Net Income | $13.90 mln | ||
Q3 Adjusted EBITDA | $39.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Ducommun Incorporated is $213.00, about 36.3% above its November 4 closing price of $156.33
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 38 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)