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The Zacks Analyst Blog Highlights: Boeing, General Dynamics, Northrop Grumman, Honeywell International and Lockheed Martin
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For Immediate Release
Chicago, IL – October 27, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include The Boeing Company (BA - Free Report) , General Dynamics Corporation (GD - Free Report) , Northrop Grumman Corporation (NOC - Free Report) , Honeywell International Inc. (HON - Free Report) and Lockheed Martin Corporation (LMT - Free Report) .
The Q3 earnings season is in full swing, with 38.2% of the S&P 500 members having reported their numbers as of Oct 25. So far, earnings growth rate for these 164 index members have been lower than the preceding quarter, whereas revenue growth rate shows acceleration.
As far as the broader Aerospace sector is concerned, although earnings growth projections are not very inspiring, 83.3% of the stocks that have reported results delivered a beat as of Oct 25.
In fact, the outlook for defense stocks improved significantly after the U.S. Senate passed the defense policy bill worth $700 billion which surpassed the fiscal 2018 budget proposal proposed by Trump in March.
Over the last five trading sessions, major indices of the Aerospace-Defense industry hint at conflicting results, probably on mixed earnings expectations from major defense biggies that are lined up for their quarterly release this week. While the S&P 500 Aerospace & Defense (Industry) Index dipped 0.6%, the Dow Jones U.S. Aerospace & Defense Index inched up 0.2% during this period.
Among last week’s highlights, defense primes The Boeing Company, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc. and Lockheed Martin Corporation, among others, released their third-quarter numbers.
Recap of Last Week’s Key Stories
1. Aerospace giant, Boeing reported adjusted earnings of $2.72 per share for third-quarter 2017, beating the Zacks Consensus Estimate of $2.65 by 2.6%. The company's revenues amounted to $24.31 billion in the reported quarter, missing the Zacks Consensus Estimate of $24.06 billion by 1%. The top line also declined 1.7% year over year.
Backlog at the end of the third quarter was down to $474.3 billion from $482.2 billion at the end of the second quarter. Reported backlog included $16 billion of net orders during the quarter.
Boeing’s adjusted or core earnings per share expectation for 2017 are in the range of $9.90-$10.10, up from the prior guided range of $9.80-$10.00. GAAP earnings are now projected to be in the range of $11.20-$11.40 per share compared with the previous range of $11.10-$11.30 (read more: Boeing Tops Q3 Earnings Estimates, Updates '17 Guidance).
2. Military shipbuilder General Dynamics reported earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. The company’s third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%. Reported revenues also dipped 1% from $7,657 million in the year-ago quarter.
The company recorded a total backlog of $63.9 billion, down 0.2% year over year. Funded backlog at the quarter end was down 1% to $52.7 billion.
As of Oct 1, 2017, General Dynamics’ cash and cash equivalents were $2,722 million compared with $2,334 million as of Dec 31, 2016. Free cash flow from operations at the end of the third quarter was $751 million, compared with $389 million in the previous year (read more: General Dynamics Beats Q3 Earnings, Revenues Dip Y/Y).
3.Defense major Northrop Grumman reported earnings of $3.68 per share, beating the Zacks Consensus Estimate of $2.92 by 26%. The company reported total revenues of $6.53 billion, beating the Zacks Consensus Estimate of $6.32 billion by 3.3%. Revenues also increased 6% from the year-ago figure of $6.16 billion.
Northrop Grumman’s cash and cash equivalents as of Sep 30, 2017 were $1.88 billion, down from $2.54 billion as of Dec 31, 2016.
Northrop Grumman raised its financial guidance for 2017. The company currently expects to generate revenues approximately $25.5 billion during 2017 compared with its earlier guidance of lower than $25 billion (read more: Northrop Grumman Beats Q3 Earnings, Raises '17 Outlook).
4. Honeywell International reported adjusted earnings of $1.75 a share beating the Zacks Consensus Estimate of $1.74 by 0.6%. The company’s third-quarter revenues improved 3.2% year over year to $10,121 million and exceeded the Zacks Consensus Estimate of $10,056 million.
Net cash provided from operating activities for the three months ended Sep 30, 2017, was $1,407 million compared with $1,554 million in the prior-year period. Honeywell exited third-quarter 2017 with free cash flow of $1,195 million compared with the year-ago figure of $1,280 million.
The company raised earnings and revenue guidance for 2017. Its earnings per share are currently expected in the range of $7.05-$7.10 (from $7.00-$7.10) (read more: Honeywell Beats on Q3 Earnings & Revenues, Guides Well).
5. Pentagon’s largest defense contractor Lockheed Martin reported earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. Its total revenues came in at $12.17 billion, which missed the Zacks Consensus Estimate of $12.83 billion by 5.1%.
Lockheed Martin ended the third quarter (on Sep 24, 2017) with $103.6 billion in backlog, up 12.5% from $92.1 billion at the end of the second quarter.
Lockheed Martin raised 2017 financial guidance. The company expects to generate revenues in the range of $50.0-$51.2 billion, higher than the earlier provided projection of $49.8-$51.0 billion (read more: Lockheed Misses on Q3 Earnings, Raises '17 Outlook).
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Boeing, General Dynamics, Northrop Grumman, Honeywell International and Lockheed Martin
For Immediate Release
Chicago, IL – October 27, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include The Boeing Company (BA - Free Report) , General Dynamics Corporation (GD - Free Report) , Northrop Grumman Corporation (NOC - Free Report) , Honeywell International Inc. (HON - Free Report) and Lockheed Martin Corporation (LMT - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Defense Stock Roundup: BA, GD, UTX Beat, LMT Misses
The Q3 earnings season is in full swing, with 38.2% of the S&P 500 members having reported their numbers as of Oct 25. So far, earnings growth rate for these 164 index members have been lower than the preceding quarter, whereas revenue growth rate shows acceleration.
As far as the broader Aerospace sector is concerned, although earnings growth projections are not very inspiring, 83.3% of the stocks that have reported results delivered a beat as of Oct 25.
In fact, the outlook for defense stocks improved significantly after the U.S. Senate passed the defense policy bill worth $700 billion which surpassed the fiscal 2018 budget proposal proposed by Trump in March.
Over the last five trading sessions, major indices of the Aerospace-Defense industry hint at conflicting results, probably on mixed earnings expectations from major defense biggies that are lined up for their quarterly release this week. While the S&P 500 Aerospace & Defense (Industry) Index dipped 0.6%, the Dow Jones U.S. Aerospace & Defense Index inched up 0.2% during this period.
Among last week’s highlights, defense primes The Boeing Company, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc. and Lockheed Martin Corporation, among others, released their third-quarter numbers.
Recap of Last Week’s Key Stories
1. Aerospace giant, Boeing reported adjusted earnings of $2.72 per share for third-quarter 2017, beating the Zacks Consensus Estimate of $2.65 by 2.6%. The company's revenues amounted to $24.31 billion in the reported quarter, missing the Zacks Consensus Estimate of $24.06 billion by 1%. The top line also declined 1.7% year over year.
Backlog at the end of the third quarter was down to $474.3 billion from $482.2 billion at the end of the second quarter. Reported backlog included $16 billion of net orders during the quarter.
Boeing’s adjusted or core earnings per share expectation for 2017 are in the range of $9.90-$10.10, up from the prior guided range of $9.80-$10.00. GAAP earnings are now projected to be in the range of $11.20-$11.40 per share compared with the previous range of $11.10-$11.30 (read more: Boeing Tops Q3 Earnings Estimates, Updates '17 Guidance).
2. Military shipbuilder General Dynamics reported earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. The company’s third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%. Reported revenues also dipped 1% from $7,657 million in the year-ago quarter.
The company recorded a total backlog of $63.9 billion, down 0.2% year over year. Funded backlog at the quarter end was down 1% to $52.7 billion.
As of Oct 1, 2017, General Dynamics’ cash and cash equivalents were $2,722 million compared with $2,334 million as of Dec 31, 2016. Free cash flow from operations at the end of the third quarter was $751 million, compared with $389 million in the previous year (read more: General Dynamics Beats Q3 Earnings, Revenues Dip Y/Y).
3.Defense major Northrop Grumman reported earnings of $3.68 per share, beating the Zacks Consensus Estimate of $2.92 by 26%. The company reported total revenues of $6.53 billion, beating the Zacks Consensus Estimate of $6.32 billion by 3.3%. Revenues also increased 6% from the year-ago figure of $6.16 billion.
Northrop Grumman’s cash and cash equivalents as of Sep 30, 2017 were $1.88 billion, down from $2.54 billion as of Dec 31, 2016.
Northrop Grumman raised its financial guidance for 2017. The company currently expects to generate revenues approximately $25.5 billion during 2017 compared with its earlier guidance of lower than $25 billion (read more: Northrop Grumman Beats Q3 Earnings, Raises '17 Outlook).
4. Honeywell International reported adjusted earnings of $1.75 a share beating the Zacks Consensus Estimate of $1.74 by 0.6%. The company’s third-quarter revenues improved 3.2% year over year to $10,121 million and exceeded the Zacks Consensus Estimate of $10,056 million.
Net cash provided from operating activities for the three months ended Sep 30, 2017, was $1,407 million compared with $1,554 million in the prior-year period. Honeywell exited third-quarter 2017 with free cash flow of $1,195 million compared with the year-ago figure of $1,280 million.
The company raised earnings and revenue guidance for 2017. Its earnings per share are currently expected in the range of $7.05-$7.10 (from $7.00-$7.10) (read more: Honeywell Beats on Q3 Earnings & Revenues, Guides Well).
5. Pentagon’s largest defense contractor Lockheed Martin reported earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. Its total revenues came in at $12.17 billion, which missed the Zacks Consensus Estimate of $12.83 billion by 5.1%.
Lockheed Martin ended the third quarter (on Sep 24, 2017) with $103.6 billion in backlog, up 12.5% from $92.1 billion at the end of the second quarter.
Lockheed Martin raised 2017 financial guidance. The company expects to generate revenues in the range of $50.0-$51.2 billion, higher than the earlier provided projection of $49.8-$51.0 billion (read more: Lockheed Misses on Q3 Earnings, Raises '17 Outlook).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.