A month has gone by since the last earnings report for Aerojet Rocketdyne Holdings . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aerojet Rocketdyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Aerojet Rocketdyne Q2 Earnings Top Estimates, Rise Y/Y
Aerojet Rocketdyne reported second-quarter earnings per share (EPS) of 59 cents, which surpassed the Zacks Consensus Estimate of 44 cents by 34.1%. The bottom line also improved 28.3% year over year from 46 cents reported in the year-ago quarter.
Operational Performance
The company’s quarterly sales of $556.9 million improved 8.7% from the year-ago quarter’s $512.4 million. The top line also exceeded the Zacks Consensus Estimate by 3.9%. This year-over-year increase in net sales was primarily led by a rise in Aerospace and Defense segment sales.
Aerojet Rocketdyne’s backlog at the end of second-quarter 2021 totaled $6.7 billion, higher than $5.3 billion witnessed at the end of the first quarter of 2021. Of this, funded backlog amounted to $3 billion.
Total operating expenses increased 8.8% to $446.1 million in the second quarter. Operating income of $74.3 million rose 7.7% from the prior-year period’s $69 million.
Segmental Performance
Aerospace & Defense: Revenues at this segment improved 8.6% year over year to $556 million from the previous year’s $511.9 million.
Real Estate: The segment generated revenues of $0.9 million compared with the year-ago quarter’s reported revenues of $0.5 million.
Financial Update
Aerojet Rocketdyne exited the second quarter with cash and cash equivalents of $571.3 million, down from $1,149.5 million as of Dec 31, 2020.
Long-term debt amounted to $310.4 million, down from $324.4 million as of Dec 31, 2020.
Operating cashflow from continuing operations was $20.2 million as of Jun 30, 2021, compared with cash flow of $127.6 million in the year-ago period.
Free cash flow at the end of the reported quarter was $7.9 million compared with the prior year’s $111.4 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Aerojet Rocketdyne has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Aerojet Rocketdyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Aerojet Rocketdyne (AJRD) Down 8.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Aerojet Rocketdyne Holdings . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aerojet Rocketdyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Aerojet Rocketdyne Q2 Earnings Top Estimates, Rise Y/Y
Aerojet Rocketdyne reported second-quarter earnings per share (EPS) of 59 cents, which surpassed the Zacks Consensus Estimate of 44 cents by 34.1%. The bottom line also improved 28.3% year over year from 46 cents reported in the year-ago quarter.
Operational Performance
The company’s quarterly sales of $556.9 million improved 8.7% from the year-ago quarter’s $512.4 million. The top line also exceeded the Zacks Consensus Estimate by 3.9%. This year-over-year increase in net sales was primarily led by a rise in Aerospace and Defense segment sales.
Aerojet Rocketdyne’s backlog at the end of second-quarter 2021 totaled $6.7 billion, higher than $5.3 billion witnessed at the end of the first quarter of 2021. Of this, funded backlog amounted to $3 billion.
Total operating expenses increased 8.8% to $446.1 million in the second quarter. Operating income of $74.3 million rose 7.7% from the prior-year period’s $69 million.
Segmental Performance
Aerospace & Defense: Revenues at this segment improved 8.6% year over year to $556 million from the previous year’s $511.9 million.
Real Estate: The segment generated revenues of $0.9 million compared with the year-ago quarter’s reported revenues of $0.5 million.
Financial Update
Aerojet Rocketdyne exited the second quarter with cash and cash equivalents of $571.3 million, down from $1,149.5 million as of Dec 31, 2020.
Long-term debt amounted to $310.4 million, down from $324.4 million as of Dec 31, 2020.
Operating cashflow from continuing operations was $20.2 million as of Jun 30, 2021, compared with cash flow of $127.6 million in the year-ago period.
Free cash flow at the end of the reported quarter was $7.9 million compared with the prior year’s $111.4 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Aerojet Rocketdyne has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Aerojet Rocketdyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.