Astronics Corp. CEO Peter Gundermann thinks the East Aurora aerospace company's two-year slump could be coming to an end.
While Astronics struggled again during the third quarter, with sales and profits falling short of forecasts, Gundermann said he expects a rebound to begin during the current quarter and continue into 2018.
"We have high expectations for the fourth quarter," Gundermann said as Astronics announced that its third quarter profits tumbled by 50 percent and its sales fell by 4 percent.
A rebound in new order bookings, which have been steadily improving this year, also is expected to lead to improvement in both sales and profits next year, led by a recovery in sales of its in-seat power and antenna products, Gundermann said. Sales from Astronics' existing businesses could rise by more than 10 percent, he said.
Astronics' profits fell to $6.1 million, or 21 cents per share, during the third quarter, down from $12.1 million, or 41 cents per share, a year ago. The earnings were 10 cents less than analysts were expecting.
The company's sales fell to $150 million from $155 million, with all of the decline coming from its test systems business because of a steep drop in revenues from the semiconductor market.
Astronics said it expects its sales next year to range between $675 million and $750 million, up from an estimated $629 million this year, as recent acquisitions add to revenues and organic growth tops 10 percent. The company said the revenue forecast does not include sales from its planned acquisition of Telefonix, which is expected to close in the next few weeks. That, and other potential contract opportunities in its test systems business, could lead to an upward revision of its revenue estimate, Gundermann said.
Astronics does not provide earnings guidance.