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Aerospace & Defense Stocks to Post Earnings on Feb 13: LDOS & KTOS
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The fourth-quarter 2023 reporting cycle has started on a solid note, with a handful of aerospace and defense stocks like Lockheed Martin, Boeing and Huntington Ingalls reporting better-than-expected earnings and sales. Some major industry players like Leidos Holdings (LDOS - Free Report) and Kratos Defense & Security Solutions (KTOS - Free Report) are set to report their results tomorrow.
Factors That Influenced Aerospace & Defense Stocks
Per a report published by the International Air Transport Association (IATA) in November 2023, industry-wide global revenues per kilometer increased a solid 29.7% year over year in November 2023. This is indicative of the steadily growing air passenger traffic across the world, which, in turn, is likely to significantly boost the fourth-quarter results of aerospace and defense stocks, particularly those engaged in commercial aviation.
Evidently, Boeing witnessed a solid year-over-year surge of 4.5% and 25% in commercial shipments of its 787 and 767 jets, respectively, during the quarter to be reported. Its 777-delivery figure also reflected a year-over-year improvement of 50%. With BA being the nation’s largest jet maker, we expect the October-December quarter results of the remaining aerospace majors to reflect a similar improvement in delivery trends. Revenues generated from such solid deliveries must have boosted the overall top as well as bottom-line growth of the Aerospace sector, which houses all aerospace and defense stocks.
Stocks that are more focused on combat are also expected to have gained as a result of consistent government support. Notably, a steady order flow observed in the past couple of quarters, along with an improving delivery trend in recent times, buoyed by recovering economic trends, is likely to have bolstered the aerospace and defense stocks’ fourth-quarter revenues.
However, persistent headwinds like supply-chain disruption, inflationary pressure, rising jet fuel prices, as well as increased interest expenses might have adversely impacted the industry’s bottom-line performance.
Q4 Projections
The Aerospace sector’s earnings are expected to have improved 10.1% from the prior-year quarter’s reported figure, on a revenue surge of 7.3%.
For more details on quarterly releases, you can go through the latest Earnings Preview.
Aerospace & Defense Stocks to Watch
Let's take a look at two defense companies that are scheduled to report fourth-quarter 2023 earnings on Feb 13, and find out how things might have shaped up prior to the announcements.
Leidos’ fourth-quarter results are expected to reflect strong revenue performance across most of its business segments. Notably, increased sales volumes for defensive hypersonics and LDOS’ Australian Airborne Solutions business are likely to have bolstered the Defense Solution’s revenue performance. Higher volumes of Social Security Administration’s IT work and increased demand for medical examinations are likely to boost Health unit’s fourth-quarter results.
LDOS currently has an Earnings ESP of -2.75% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kratos Defense boasts a four-quarter average earnings surprise of 61.07%. The consensus estimate for its fourth-quarter sales is pegged at $252.1 million, implying an improvement of 1.1% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for its fourth-quarter earnings is pegged at 8 cents per share, flat year over year. KTOS currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Kratos Defense & Security Solutions, Inc. Price and EPS Surprise
Image: Bigstock
Aerospace & Defense Stocks to Post Earnings on Feb 13: LDOS & KTOS
The fourth-quarter 2023 reporting cycle has started on a solid note, with a handful of aerospace and defense stocks like Lockheed Martin, Boeing and Huntington Ingalls reporting better-than-expected earnings and sales. Some major industry players like Leidos Holdings (LDOS - Free Report) and Kratos Defense & Security Solutions (KTOS - Free Report) are set to report their results tomorrow.
Factors That Influenced Aerospace & Defense Stocks
Per a report published by the International Air Transport Association (IATA) in November 2023, industry-wide global revenues per kilometer increased a solid 29.7% year over year in November 2023. This is indicative of the steadily growing air passenger traffic across the world, which, in turn, is likely to significantly boost the fourth-quarter results of aerospace and defense stocks, particularly those engaged in commercial aviation.
Evidently, Boeing witnessed a solid year-over-year surge of 4.5% and 25% in commercial shipments of its 787 and 767 jets, respectively, during the quarter to be reported. Its 777-delivery figure also reflected a year-over-year improvement of 50%. With BA being the nation’s largest jet maker, we expect the October-December quarter results of the remaining aerospace majors to reflect a similar improvement in delivery trends. Revenues generated from such solid deliveries must have boosted the overall top as well as bottom-line growth of the Aerospace sector, which houses all aerospace and defense stocks.
Stocks that are more focused on combat are also expected to have gained as a result of consistent government support. Notably, a steady order flow observed in the past couple of quarters, along with an improving delivery trend in recent times, buoyed by recovering economic trends, is likely to have bolstered the aerospace and defense stocks’ fourth-quarter revenues.
However, persistent headwinds like supply-chain disruption, inflationary pressure, rising jet fuel prices, as well as increased interest expenses might have adversely impacted the industry’s bottom-line performance.
Q4 Projections
The Aerospace sector’s earnings are expected to have improved 10.1% from the prior-year quarter’s reported figure, on a revenue surge of 7.3%.
For more details on quarterly releases, you can go through the latest Earnings Preview.
Aerospace & Defense Stocks to Watch
Let's take a look at two defense companies that are scheduled to report fourth-quarter 2023 earnings on Feb 13, and find out how things might have shaped up prior to the announcements.
Leidos’ fourth-quarter results are expected to reflect strong revenue performance across most of its business segments. Notably, increased sales volumes for defensive hypersonics and LDOS’ Australian Airborne Solutions business are likely to have bolstered the Defense Solution’s revenue performance. Higher volumes of Social Security Administration’s IT work and increased demand for medical examinations are likely to boost Health unit’s fourth-quarter results.
However, an unfavorable business mix and higher interest expense might have negatively impacted LDOS’ overall earnings performance (read more: Will High Interest Expense Hurt Leidos' Q4 Earnings?).
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
LDOS currently has an Earnings ESP of -2.75% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Leidos Holdings, Inc. Price and EPS Surprise
Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote
Kratos Defense boasts a four-quarter average earnings surprise of 61.07%. The consensus estimate for its fourth-quarter sales is pegged at $252.1 million, implying an improvement of 1.1% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for its fourth-quarter earnings is pegged at 8 cents per share, flat year over year. KTOS currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Kratos Defense & Security Solutions, Inc. Price and EPS Surprise
Kratos Defense & Security Solutions, Inc. price-eps-surprise | Kratos Defense & Security Solutions, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.