DCO Earnings Prediction
The chart below shows how DCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DCO sees a +1.34% change in stock price 10 days leading up to the earnings, and a -0.44% change 10 days following the report. On the earnings day itself, the stock moves by -1.03%. This data can give you a slight idea of what to expect for the next quarter's release.
DCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
201.41M
2.63%
2.24%
Gross Margin
26.15%
14.59%
0.54%
Operating Margin
8.86%
14.47%
12.87%
Net Margin
5.04%
207.32%
28.57%
EPS
0.67
204.55%
28.85%
No Data Available
DCO Earnings Analysis
Ducommun Incorporated Corporation (DCO.N) Earnings Conference Call
Positive
Record Revenue Milestone: 1. Record Revenue Achievement: Ducommun reported Q3 2024 revenues of $201.4 million, marking a 2.6% increase year-over-year and the first time revenues exceeded $200 million.
Military and Space Revenue Growth: 2. Strong Military and Space Growth: Military and space revenues grew by 6% year-over-year, driven by strong performance in radar, electronic warfare, and missile programs, contributing to $111 million in total military and space revenue.
Gross Margin Improvement: 3. Improved Gross Margins: The company achieved gross margins of 26.2% in Q3 2024, a 350 basis point increase from 22.7% in the prior year, reflecting benefits from strategic pricing initiatives and a favorable product mix.
Adjusted Operating Income Surge: 4. Record Adjusted Operating Income: Adjusted operating income reached $21.1 million, or 10.5% of revenue, compared to $17.5 million or 8.9% in Q3 2023, showcasing effective cost management and revenue growth.
Backlog Expansion Insights: 5. Significant Backlog Growth: Ducommun's consolidated backlog increased by over $85 million year-over-year to $1.044 billion, with defense backlog rising by $97 million, indicating strong future revenue potential.
Negative
Backlog Decline Concerns: 1. Declining Backlog: Ducommun's consolidated backlog decreased by $24 million sequentially, indicating potential future revenue challenges.
Commercial Aerospace Backlog Decline: 2. Weak Commercial Aerospace Performance: The commercial aerospace backlog decreased by $20 million sequentially, despite being up $8 million year-over-year, suggesting instability in this segment.
Lower Revenue Forecast: 3. Lower Revenue Guidance: The company guided to the lower end of single digits for 2024 revenue growth, specifically 3% to 4%, reflecting a slowdown in expected performance.
Boeing Strike Consequences: 4. Impact of Boeing Strike: The Boeing MAX production rates were reported to be at zero in September, significantly affecting revenue and operational performance in the fourth quarter.
Restructuring Charges Overview: 5. Restructuring Charges: Ducommun incurred $1.9 million in restructuring charges during Q3 2024, with an expectation of an additional $2 million to $3 million as the restructuring program continues.
DCO FAQs
How does DCO typically perform around its earnings report dates?
Is Ducommun Incorporated (DCO) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
DCO Earning Call Sentiment
Ducommun Incorporated (DCO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DCO.N
2.09%Positive
The earnings call reveals strong financial performance with record revenue and gross margins, a significant backlog increase, and improved net income. Despite the lack of a shareholder return plan, the Q&A indicates a strong partnership with Northrop Grumman and potential growth in the 787 program. While management was unclear on some specifics, the overall sentiment is positive, especially with strategic pricing and productivity improvements. The market is likely to react positively, with a predicted stock price increase of 2% to 8% over the next two weeks.
