
Why Did Park Aerospace Stock Decline Nearly 4% After-Hours?
Park Aerospace (PKE) stock fell 3.9% in extended trading on Thursday after the company posted a dip in fiscal second-quarter revenue.
The aerospace materials supplier reported $16.4 million in net sales for the quarter ended Aug. 31, compared with $16.7 million in sales for the same period, a year earlier. The dip came despite a rise in earnings to $0.12 per share, compared with $0.10 per share.
Retail sentiment on Stocktwits about Park Aerospace was in the 'extremely bullish' territory at the time of writing.
The company said that expenses related to its new plant and delays in customer certification and testing affected its second-quarter gross margin.“It's not our fault or anything like that, but sometimes it just delays insurance, certification, and engineering work,” CEO Brian Shore said.
However, Park Aerospace noted that the impact of tariffs was minimal because it could pass most of the expense increase on to its customers.
Park Aerospace, a composite materials producer, counts GE Aerospace among its customers and supplies parts for both Boeing and Airbus jets. Shore said that the company sees a ramp-up of aircraft deliveries by both the planemakers. Park Aerospace executives were confident that Airbus would hit its delivery target of 75 jets per month.
Shore said that the supply-chain issues for the LEAP-1A engine, used in the Airbus 320 family, are getting better.“I think that's a deliberate focus by GE and CFM, which is a very good thing, because that's probably the most significant restriction to Airbus's ability to ramp up to that 75,” he said.
Park Aerospace will also get an earnings boost after Boeing's long-haul aircraft 777x, whose engine uses materials made by the company, enters service.
Park stock has risen 41.4% this year.
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