Astronics Stock Falls On Missing Q2 Estimates, Weak Margins

Astronics Corp ATRO reported a second-quarter sales decline of 10.1% year-over-year to $111.16 million, missing the consensus of $114.52 million.
Loss from operation reduced to $(5.92) million from $(18.68) million a year ago.
Adjusted EBITDA fell 96% to $0.36 million from $9.16 million in 2Q20, and margin contracted by 708 bps to 0.33%.
The gross margin contracted by 790 bps to 13.8%.
SG&A expenses reduced by 35.2% Y/Y to $21.32 million and as a percentage of sales reduced by 740 bps to 19.2%.
Sales by segments: Aerospace $89.2 million (-13% Y/Y) and Test Systems $21.94 million (+3% Y/Y).
Loss per share improved to $(0.26) from $(0.77) in 2Q20, missing consensus of $(0.16).
Astronics cash used in operating activities year-to-date was $2.34 million, compared to cash provided $41.55 million a year ago.
Bookings for the quarter were $126.3 million resulting in a book-to-bill ratio of 1.14:1. Backlog at the end of the quarter was $312.7 million, up 5% sequentially.
FY21 Outlook: Astronics expects an uptick in sales to about $240 million in the second half, weighted slightly to Q4.
Planned capital expenditures remain unchanged at $10 million - $11 million.
Price Action: ATRO shares traded lower by 9.58% at $15.0 in premarket on the last check Friday.