Ducommun (NYSE:DCO) Announces Earnings Results, Beats Estimates By $0.07 EPS

Ducommun (NYSE:DCO) posted its quarterly earnings data on Tuesday. The aerospace company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.07, FiscalAI reports. Ducommun had a positive return on equity of 8.47% and a negative net margin of 4.11%.The firm had revenue of $209.02 million for the quarter, compared to the consensus estimate of $199.61 million. During the same quarter in the previous year, the company earned $0.83 EPS. The business’s revenue for the quarter was up 7.7% compared to the same quarter last year.

Here are the key takeaways from Ducommun’s conference call:

• Ducommun reported a record Q1 revenue of $209 million, up about 9% year over year, marking its fourth straight quarter above $200 million and its 20th consecutive quarter of year-over-year revenue growth.
• Commercial aerospace rebounded strongly, with revenue up roughly 18% year over year, driven by higher OEM production rates on Airbus A220/A320 and Boeing 737 MAX programs, plus growth in commercial rotorcraft.
• Margins improved meaningfully as gross margin rose to 26.9%, adjusted operating margin reached 8.6%, and adjusted EBITDA margin hit 16.9%, keeping the company on track toward its Vision 2027 target of 18%.
• Defense momentum remains strong, with missile revenue up 22% in the quarter and management expecting a multi-year upside from new missile framework agreements and higher production on programs like Tomahawk, PAC-3, SM-3, and SM-6.
• Management reiterated full-year 2026 revenue growth guidance of mid- to high-single digits, but said some commercial aerospace destocking headwinds should continue through the rest of the year and may make quarterly growth uneven.

Ducommun Stock Performance

Shares of DCO traded up $3.23 on Wednesday, reaching $148.26. 15,919 shares of the stock traded hands, compared to its average volume of 184,005. The firm has a market cap of $2.24 billion, a price-to-earnings ratio of -63.99 and a beta of 1.06. The stock’s 50-day moving average price is $133.32 and its 200-day moving average price is $113.70. Ducommun has a 12 month low of $65.16 and a 12 month high of $148.82. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.50 and a quick ratio of 2.47.

Insiders Place Their Bets

In other Ducommun news, Director Richard A. Baldridge sold 10,440 shares of the company’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $130.83, for a total value of $1,365,865.20. Following the sale, the director directly owned 20,100 shares in the company, valued at $2,629,683. This represents a 34.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 5.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC boosted its stake in Ducommun by 618.8% in the second quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 297 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new position in Ducommun during the 4th quarter valued at about $95,000. CANADA LIFE ASSURANCE Co acquired a new position in Ducommun during the 2nd quarter valued at about $145,000. Tower Research Capital LLC TRC boosted its stake in shares of Ducommun by 454.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,096 shares of the aerospace company’s stock valued at $173,000 after purchasing an additional 1,718 shares during the last quarter. Finally, Engineers Gate Manager LP acquired a new stake in shares of Ducommun during the 4th quarter worth approximately $208,000. 92.15% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Royal Bank Of Canada raised their price target on shares of Ducommun from $142.00 to $150.00 and gave the stock an “outperform” rating in a report on Friday, March 13th. B. Riley Financial reiterated a “buy” rating on shares of Ducommun in a report on Wednesday, January 28th. Citigroup lowered their target price on shares of Ducommun from $143.00 to $141.00 and set a “buy” rating on the stock in a research report on Thursday, April 2nd. Wall Street Zen lowered Ducommun from a “buy” rating to a “hold” rating in a report on Saturday. Finally, The Goldman Sachs Group boosted their price target on Ducommun from $134.00 to $151.00 and gave the stock a “buy” rating in a research report on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, Ducommun presently has an average rating of “Moderate Buy” and a consensus price target of $144.50.

About Ducommun

Ducommun Incorporated, through its Electronics and Structures segments, provides engineered products and integrated systems for the global aerospace, defense and space markets. The Electronics segment focuses on high-reliability electronic assemblies, cable and wire harnesses, connector systems and harsh environment electronics for flight-critical applications. In the Structures segment, Ducommun manufactures complex metallic and composite components such as flight control surfaces, skin panels, heat exchangers and other aerostructures for commercial and military platforms.

Founded in 1849 in California as a hardware and stagecoach parts supplier, Ducommun expanded into aerospace manufacturing during World War II and has since grown its capabilities through targeted acquisitions and organic investments.