Park Aerospace (NYSE:PKE) Posts Quarterly Earnings Results

Park Aerospace (NYSE:PKE) announced its earnings results on Thursday. The semiconductor company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.16 by $0.03, FiscalAI reports. Park Aerospace had a net margin of 15.38% and a return on equity of 10.66%. The company had revenue of $24.19 million during the quarter, compared to analysts’ expectations of $22.31 million.

Here are the key takeaways from Park Aerospace’s conference call:

• Q4 results came in within guidance, with sales of $24.2 million and adjusted EBITDA of $5.2 million landing in the top half of the company’s forecast range.
• C2B fabric sales were a major driver of the quarter, including $7.1 million of fabric sales and $1.3 million of ablative materials manufacturing tied to stockpiling for missile programs.
• Missed shipments and supply chain issues are re-emerging as a constraint as industry ramps accelerate, with the company expecting about $1.3 million of missed shipments in Q1.
• Defense demand looks unusually strong, especially for PAC-3 Patriot-related products, as depleted missile stockpiles and reported plans to quadruple production are driving “hyper” quoting activity for ablative materials.
• Park plans a larger manufacturing footprint to support both the commercial aerospace “juggernaut” and missile systems growth, and management said the original plant design likely needs to be expanded further, implying higher capital needs.

Park Aerospace Stock Performance

PKE stock opened at $31.58 on Friday. The stock has a market cap of $629.18 million, a P/E ratio of 56.39 and a beta of 0.45. The firm has a 50 day simple moving average of $32.03 and a 200 day simple moving average of $26.20. Park Aerospace has a 52 week low of $13.48 and a 52 week high of $38.20.

Park Aerospace Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, May 4th. Investors of record on Thursday, April 2nd were issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Thursday, April 2nd. Park Aerospace’s dividend payout ratio (DPR) is currently 89.29%.

Institutional Trading of Park Aerospace

Several institutional investors have recently made changes to their positions in PKE. Goldman Sachs Group Inc. boosted its holdings in shares of Park Aerospace by 257.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 112,272 shares of the semiconductor company’s stock worth $2,396,000 after purchasing an additional 80,841 shares during the period. Squarepoint Ops LLC acquired a new stake in shares of Park Aerospace during the third quarter worth approximately $1,512,000. Millennium Management LLC acquired a new stake in shares of Park Aerospace during the third quarter worth approximately $1,371,000. Kennedy Capital Management LLC raised its position in Park Aerospace by 28.0% during the third quarter. Kennedy Capital Management LLC now owns 227,935 shares of the semiconductor company’s stock valued at $4,636,000 after acquiring an additional 49,894 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its position in Park Aerospace by 54.5% during the third quarter. Russell Investments Group Ltd. now owns 138,863 shares of the semiconductor company’s stock valued at $2,824,000 after acquiring an additional 49,004 shares in the last quarter. 77.83% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Weiss Ratings upgraded shares of Park Aerospace from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, March 11th. Wall Street Zen cut shares of Park Aerospace from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 23rd. One analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy”.

About Park Aerospace

Park Aerospace (NYSE: PKE) is a specialized materials and manufacturing company that designs, develops and produces high-performance composite structures, engineered laminates and specialty adhesives for aerospace, defense and industrial markets. Its product portfolio includes advanced honeycomb cores, composite assemblies, dielectric and high-reliability circuit materials, as well as structural and bonding solutions that meet demanding performance and weight requirements.

The company operates through two principal segments.