Park Aerospace (NYSE:PKE) Issues Quarterly Earnings Results

Park Aerospace (NYSE:PKE) posted its earnings results on Monday. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.03, Zacks reports. Park Aerospace had a return on equity of 10.08% and a net margin of 15.38%.The company had revenue of $18.31 million for the quarter, compared to analysts’ expectations of $17.95 million.

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

• Q1 results came in within guidance, with sales of $18.3 million and adjusted EBITDA of $4.6 million, while gross margin improved to 34.8% from the prior quarter’s weaker level.
• Military demand is becoming more important, driven by extremely strong interest in missile-system materials and the company’s sole-source position on PAC-3 MSE-related ablative materials.
• Park announced major steps toward a U.S.-based C2B fabric plant for ArianeGroup, including a July term sheet that triggers construction and gives Park rights to 100% of the output.
• The company is expanding manufacturing capacity with a new Tulsa, Oklahoma plant, budgeted at about $65 million and expected to double hot-melt/prepreg/film adhesive capacity and triple solution-treating capacity.
• Balance sheet strength remains a key support, with $89.4 million in cash and marketable securities at quarter-end, no long-term debt, and a completed $50 million ATM offering that significantly boosted liquidity.

Park Aerospace Stock Performance

Shares of NYSE:PKE opened at $32.52 on Tuesday. The company has a 50 day moving average price of $34.18 and a two-hundred day moving average price of $29.84. Park Aerospace has a 52 week low of $17.25 and a 52 week high of $39.86. The company has a market capitalization of $678.93 million, a PE ratio of 58.06 and a beta of 0.39.

Park Aerospace Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Wednesday, July 1st will be given a $0.125 dividend. This represents a $0.50 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Wednesday, July 1st. Park Aerospace’s dividend payout ratio (DPR) is currently 89.29%.

Hedge Funds Weigh In On Park Aerospace

Several institutional investors and hedge funds have recently modified their holdings of PKE. Millennium Management LLC lifted its stake in shares of Park Aerospace by 64.4% in the fourth quarter. Millennium Management LLC now owns 110,831 shares of the semiconductor company’s stock worth $2,365,000 after acquiring an additional 43,415 shares during the period. AQR Capital Management LLC boosted its stake in shares of Park Aerospace by 51.7% during the 4th quarter. AQR Capital Management LLC now owns 18,762 shares of the semiconductor company’s stock valued at $400,000 after purchasing an additional 6,391 shares in the last quarter. Trexquant Investment LP purchased a new position in Park Aerospace in the fourth quarter worth about $559,000. Price T Rowe Associates Inc. MD increased its position in Park Aerospace by 11.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 51,238 shares of the semiconductor company’s stock valued at $1,094,000 after acquiring an additional 5,237 shares during the last quarter. Finally, &PARTNERS increased its position in Park Aerospace by 5.8% in the fourth quarter. &PARTNERS now owns 21,623 shares of the semiconductor company’s stock worth $461,000 after purchasing an additional 1,194 shares during the last quarter. 77.83% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

PKE has been the subject of a number of recent research reports. Needham & Company LLC initiated coverage on shares of Park Aerospace in a research note on Monday, July 13th. They issued a “buy” rating and a $43.00 price objective for the company. Weiss Ratings upgraded shares of Park Aerospace from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, June 1st. Citizens Jmp assumed coverage on shares of Park Aerospace in a research report on Tuesday, June 9th. They set a “market outperform” rating and a $42.00 price objective for the company. Wall Street Zen downgraded shares of Park Aerospace from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 14th. Finally, Citigroup reissued a “market outperform” rating on shares of Park Aerospace in a research report on Tuesday. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target of $42.50.

Park Aerospace Company Profile

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.