Commercial equipment manufacturer for aerospace defense, Astrotech (NASDAQ:ASTC), is suffering depressed profit margins and stock price momentum given the slump in the global airline industry. But the question is, as domestic and international travel picks up in the coming months as expected, will ASTC be able to generate adequate profits to justify its current valuation? Read more to find out.Commercial equipment manufacturer Astrotech Corporation (ASTC) operates in the aerospace and defense sector. The slump in the travel and aerospace industry has severely affected ASTC. The stock has declined 62.1% over the past year, and 32.8% year-to-date.
Airports are currently struggling to stay afloat amid depressed air traffic and huge overhead costs. As a result, most airports are likely to postpone capital investments to buy or upgrade their existing non-current assets. The potential fourth wave of coronavirus has exacerbated the situation, causing shares of ASTC to slump 46.4% over the past month.
Here’s what we think could shape ASTC’s performance in the near term: