Innovative Solutions and Support (ISSC) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Innovative Solutions and Support is rated a strong buy due to significant growth opportunities from acquired Honeywell product lines and undervaluation. ISSC faces transient margin pressures from integration and duplicate costs, but expects margin improvement as F-16 program integration completes and contracts are repriced. Q3 results showed 105% sales growth driven by the F-16 line, with gross margins temporarily contracting but operating margins poised for recovery.
Innovative Solutions and Support (ISSC) offers strong long-term value via sticky OEM contracts and recent F-16 platform acquisition, despite a recent share price decline. ISSC's recent production expansion, robust revenue/EBITDA growth, and resilient business model position it for continued growth and potential upside. The market appears to have overreacted to short-term margin and revenue disruptions tied to F-16 integration, creating a compelling mispricing opportunity.
| Aerospace & Defense Industry | Industrials Sector | Shahram Askarpour CEO | NASDAQ (NGS) Exchange | 45769N105 CUSIP |
| US Country | 133 Employees | 30 Dec 2020 Last Dividend | 8 Jul 2005 Last Split | 4 Aug 2000 IPO Date |
Innovative Solutions and Support, Inc., positioned as a systems integrator, specializes in the design, development, manufacturing, selling, and servicing of advanced flight guidance, autothrottle, and cockpit display systems on a global scale. With its headquarters in Exton, Pennsylvania, and incorporated in 1988, the company caters to a wide range of clients, including commercial air transport carriers, corporate/general aviation companies, the Department of Defense alongside its commercial contractors, various aircraft operators, aircraft modification centers, governmental agencies, foreign militaries, and original equipment manufacturers. By leveraging technology and innovation, Innovative Solutions and Support, Inc. seeks to enhance the functionality, safety, and efficiency of aviation operations worldwide.