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Ducommun (DCO) reports earnings tomorrow: what to expect

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Aerospace and defense company Ducommun (NYSE: DCO) will be reporting earnings this Thursday before market hours. Here’s what investors should know.

Ducommun beat analysts’ revenue expectations last quarter, reporting revenues of $224.5 million, up 11.8% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Ducommun a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Ducommun’s revenue to grow 4.5% year on year, slowing from the 5.5% increase it recorded in the same quarter last year.

Ducommun total revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ducommun has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Ducommun’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 4.3%, and ATI reported revenues up 26.5%, topping estimates by 7.9%. AAR traded down 7.2% following the results while ATI’s stock price was unchanged.

Read our full analysis of AAR’s results here and ATI’s results here.

Investors in the aerospace segment have had steady hands going into earnings, with share prices flat over the last month. Ducommun is down 3.6% during the same time and is heading into earnings with an average analyst price target of $216.33 (compared to the current share price of $166.71).

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