Best-idea Astronics (ATRO) reported solid second-quarter results Tuesday and raised its revenue outlook for this year. Revenue jumped nearly 18% from the same period a year ago, while the firm’s operating margin expanded over 300 basis points, to 13.1%. During the quarter, the firm received its second-best quarterly bookings in history, at nearly $60 million. Bookings in its aerospace segment advanced 19% from last year’s second quarter and were up 13% on a sequential basis. Total backlog also advanced sequentially and on a year-over-year basis, and the firm noted that it expects to ship 75% of its total backlog by the end of this year. We think the firm’s order pipeline remains robust, given expected build rates of commercial aircraft and the increased use of electrical content on next-generation planes. Such strong performance prompted the firm to up its full-year 2011 revenue guidance to the range of $220 million - $230 million (was $210 million to $225 million). In all, we were pleased with Astronics second-quarter performance and look to continued strength in commercial aerospace in the back half of this year and well into 2012. We continue to be overweight aerospace in our Best Ideas portfolio.

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