Astronics Corporation (NASDAQ: ATRO) saw its stock price surge 7.08% in after-hours trading on Tuesday, following the release of its 2025 third-quarter financial results. The aerospace and defense company reported earnings that exceeded analyst expectations, despite a slight miss on revenue.

Astronics posted quarterly adjusted earnings of $0.49 per share, surpassing the analyst consensus estimate of $0.42 by 17.51%. This represents a significant 40% increase from the $0.35 per share reported in the same period last year. The company's quarterly sales reached $211.447 million, just shy of the $212.075 million analyst estimate, but still marking a 3.80% increase year-over-year.

The strong performance was underpinned by impressive margins, with Astronics reporting an operating margin of 10.9% and an adjusted EBITDA margin of 15.5%. The company's aerospace segment was a key driver, with sales increasing by 8.5% due to robust demand in the Commercial Transport market. Looking ahead, Astronics provided an optimistic outlook, expecting fourth-quarter revenue between $225 million and $235 million, which would bring the full-year 2025 revenue to $847-$857 million. This positive forecast, combined with the earnings beat, appears to be fueling investor confidence and driving the stock's after-hours rally.