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After Boeing Earnings, Which Defense Stocks Are Best Right Now?
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Shares of aerospace and defense giant Boeing (BA - Free Report) gained about 1.2% in morning trading Wednesday after the company announced its second-quarter earnings. Boeing posted a loss of 44 cents per share, which beat the Zacks Consensus Estimate of -$0.88.
Boeing also beat revenue expectations, reporting revenues of $24.76 billion against our consensus estimate of $24.45 billion. However, a slower start to the year forced the company to adjust its annual earnings guidance to $6.10 per share to $6.30 per share, down from its previously announced range of $8.15 per share to $8.35 per share.
Nevertheless, Boeing’s adjusted guidance still comes in well above our current Zacks Consensus Estimate for the company’s full-year earnings, which stands at $5.32 per share. With two beats and solid guidance, Boeing may start to see positive earnings estimate revisions, which could bump its Zacks Rank #3 (Hold) status up.
Wednesday was a busy session for defense companies and earnings reports, and several other industry leaders reported in the morning. With an impressive report from Boeing and other earnings data pouring in, the spotlight is very much on the aerospace and defense industry right now.
After Boeing’s earnings and in the middle of a busy second-quarter earnings season, check out these other defense stocks:
Northrop Grumman also reported its second-quarter earnings on Wednesday morning, and the company’s EPS figure of $2.60 per share beat the Zacks Consensus Estimate of $2.50. Revenues came in at $6.0 billion, which narrowly missed our estimate of $6.071 billion, but Northrop Grumman did adjust its earnings guidance upwards. The defense giant now expects full-year earnings to fall between $10.75 per share and $11.00 per share, which is above the current Zacks Consensus Estimate of $10.67.
General Dynamics was another member of the pack of defense stocks reporting second-quarter earnings on Wednesday morning, and the company also impressed. For the second quarter, General Dynamics reported earnings of $2.44 per share, which beat the Zacks Consensus Estimate of $2.30 per share. Although revenues came in a bit short, the company adjusted its full-year earnings guidance to $9.20 per share to $9.70 share. The current Zacks Consensus Estimate calls for earnings of $9.48 per share.
3. Engility Holdings –Zacks Rank #2 (Buy)
Engility Holdings is expected to release its latest earnings report on August 1, and there are several positive signs for the company heading into the announcement. The Zacks Consensus Estimate for earnings has gone up two cents over the past seven days, and the stock currently has a positive Earnings ESP of 3.70%. With a positive Earnings ESP and a solid Zacks Rank, investors should feel more comfortable about the possibility of an earnings beat.
Bottom Line
For many investors, Boeing is the go-to stock in the aerospace and defense sector. After a relatively solid earnings report, Boeing is in a good spot, but other players in the industry are also showing strong signs right now too.
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After Boeing Earnings, Which Defense Stocks Are Best Right Now?
Shares of aerospace and defense giant Boeing (BA - Free Report) gained about 1.2% in morning trading Wednesday after the company announced its second-quarter earnings. Boeing posted a loss of 44 cents per share, which beat the Zacks Consensus Estimate of -$0.88.
Boeing also beat revenue expectations, reporting revenues of $24.76 billion against our consensus estimate of $24.45 billion. However, a slower start to the year forced the company to adjust its annual earnings guidance to $6.10 per share to $6.30 per share, down from its previously announced range of $8.15 per share to $8.35 per share.
Nevertheless, Boeing’s adjusted guidance still comes in well above our current Zacks Consensus Estimate for the company’s full-year earnings, which stands at $5.32 per share. With two beats and solid guidance, Boeing may start to see positive earnings estimate revisions, which could bump its Zacks Rank #3 (Hold) status up.
Wednesday was a busy session for defense companies and earnings reports, and several other industry leaders reported in the morning. With an impressive report from Boeing and other earnings data pouring in, the spotlight is very much on the aerospace and defense industry right now.
After Boeing’s earnings and in the middle of a busy second-quarter earnings season, check out these other defense stocks:
1. Northrop Grumman (NOC - Free Report) –Zacks Rank 2 (Buy)
Northrop Grumman also reported its second-quarter earnings on Wednesday morning, and the company’s EPS figure of $2.60 per share beat the Zacks Consensus Estimate of $2.50. Revenues came in at $6.0 billion, which narrowly missed our estimate of $6.071 billion, but Northrop Grumman did adjust its earnings guidance upwards. The defense giant now expects full-year earnings to fall between $10.75 per share and $11.00 per share, which is above the current Zacks Consensus Estimate of $10.67.
2. General Dynamics (GD - Free Report) –Zacks Rank #2 (Buy)
General Dynamics was another member of the pack of defense stocks reporting second-quarter earnings on Wednesday morning, and the company also impressed. For the second quarter, General Dynamics reported earnings of $2.44 per share, which beat the Zacks Consensus Estimate of $2.30 per share. Although revenues came in a bit short, the company adjusted its full-year earnings guidance to $9.20 per share to $9.70 share. The current Zacks Consensus Estimate calls for earnings of $9.48 per share.
3. Engility Holdings –Zacks Rank #2 (Buy)
Engility Holdings is expected to release its latest earnings report on August 1, and there are several positive signs for the company heading into the announcement. The Zacks Consensus Estimate for earnings has gone up two cents over the past seven days, and the stock currently has a positive Earnings ESP of 3.70%. With a positive Earnings ESP and a solid Zacks Rank, investors should feel more comfortable about the possibility of an earnings beat.
Bottom Line
For many investors, Boeing is the go-to stock in the aerospace and defense sector. After a relatively solid earnings report, Boeing is in a good spot, but other players in the industry are also showing strong signs right now too.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>