Applied Aerospace posts strong Q3 but outlook misses estimates
Applied Aerospace & Defense reported third-quarter 2026 adjusted EPS of $0.18 on revenue of $182.1 million, which increased 48.6% year over year. It forecast full-year 2026 revenue of $660 million to $670 million, below the $682.4 million analyst consensus cited in the report. Investors focused on the outlook, sending shares lower in premarket trading despite higher quarterly revenue and adjusted EBITDA of $39.7 million.
Why it matters
The guidance gap implies a lower near-term revenue outlook than analysts expected, which mechanically pressures earnings expectations and valuation. RBC Capital subsequently cut its price target to $15 from $18, while Morgan Stanley raised its target to $17 and retained an Equalweight rating.
Key facts
- 1Third-quarter adjusted earnings per share were $0.18 on revenue of $182.1 million. investing.com
- 2Third-quarter revenue increased 48.6% year over year. investing.com
- 3Full-year 2026 revenue guidance was $660 million to $670 million, versus analyst consensus of $682.4 million. investing.com
- 4Third-quarter adjusted EBITDA was $39.7 million, up 37.4% year over year. investing.com
- 5Contract backlog stood at $1.26 billion. investing.com
- 6RBC Capital reduced its price target to $15 from $18, while Morgan Stanley raised its target to $17 and kept an Equalweight rating. investing.com
Open questions
- Reports differ on the size of the premarket share decline, with one citing 7.7% and another citing 10%.
Summary written by AlphAI AI Desk from 10 of 10 sources. Not investment advice. Figures are as stated by the linked sources.