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The Zacks Analyst Blog Highlights: General Dynamics, Northrop Grumman, Raytheon, L3 Technologies and Rockwell Collins
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For Immediate Release
Chicago, IL – Jan 30, 2018 – 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 General Dynamics Corp. (GD - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , Raytheon Co. , L3 Technologies, Inc.andRockwell Collins Inc. .
Defense Stock Roundup: Q4 Earnings for GD, NOC, RTN, LLL & More
The Q4 earnings season is in full swing, with almost 26% of S&P 500 companies having released their quarterly results. As of Jan 24, of the 89 S&P 500 members which revealed their earnings numbers, 80.9% delivered an earnings beat, while 74.2% surpassed revenue estimates.
Coming to the broader Aerospace sector’s performance, 9.1% of the defense stocks released earnings as of Jan 24, with an earnings beat ratio of 100% on 0.5% sales growth.
The impressive earnings results got reflected in the defense stock’s performance over the last five trading sessions. Major indices of the Aerospace-Defense space — the S&P 500 Aerospace & Defense (Industry) index rose 3.4%, while the Dow Jones U.S. Aerospace & Defense index grew 3.3% — during this period.
Among last week’s highlights, defense primes, General Dynamics Corp., Northrop Grumman Corp., Raytheon Co., L3 Technologies, Inc., Rockwell Collins Inc., and others have released their quarterly figures.
Recap of Last Week’s Key Stories
1. General Dynamics’ fourth-quarter 2017 earnings from continuing operations of $2.50 per share surpassed the Zacks Consensus Estimate of $2.37 by 5.5%. Reported earnings were up 6.8% from $2.36 recorded in the year-ago quarter.
However, the company’s total revenues of $8,277 million missed the Zacks Consensus Estimate of $8,437 million by 1.9%. Nevertheless, revenues were up 8.2% from $7,654 million in the year-ago quarter.
As of Dec 31, 2017, General Dynamics’ cash and cash equivalents were $2,983 million compared with $2,334 million as of Dec 31, 2016. The company’s cash flow from operating activities was $3,879 million for 2017 compared with $2,198 million in 2016 (read more:General Dynamics Beats Q4 Earnings, Revenues Up Y/Y).
2. Raytheon’s fourth-quarter 2017 adjusted earnings from continuing operations of $2.03 per share exceeded the Zacks Consensus Estimate of $2.02 by 0.5%.
The company’s reported earnings of $1.35 per share came in below the prior-year quarter’s equivalent of $1.88, owing to the Tax Cuts and Job Acts of 2017, which had an unfavorable impact of 59 cents on earnings.
The company’s fourth-quarter revenues of $6,783 million witnessed 8% year-over-year growth, which however missed the Zacks Consensus Estimate of $6,833.7 million by 0.7%.Total backlog at the end of 2017 was $38.2 billion, compared with $36.7 billion at the end of 2016.
3. L3 Technologies’ fourth-quarter 2017 adjusted earnings of $2.35 per share from continuing operations topped the Zacks Consensus Estimate of $2.30 by 2.2%. The company reported earnings of $3.34, higher than the prior-year quarter’s equivalent of $2.32, led by a tax benefit of 99 cents.
Total revenues of $2.57 billion in the quarter beat the Zacks Consensus Estimate of $2.55 billion by 1.1%. However, the top line was down 3% year over year. Its funded backlog was $9 billion as of Dec 31, 2017, up 6% from $8.4 billion as of Dec 31, 2016.
As of Dec 31, 2017, L3 Technologies had $662 million in cash and cash equivalents compared with $363 million as of Dec 31, 2016. L3 Technologies raised its 2018 earnings outlook. The company now expects earnings in the range of $9.30-$9.50 per share (read more: L3 Technologies Q4 Earnings Top, Raises '18 EPS View).
4. Northrop Grumman’s fourth-quarter 2017 earnings of $2.82 per share surpassed the Zacks Consensus Estimate of $2.75 by 2.5%. Reported earnings were $1.01, down nearly 65.9% year over year, due to higher tax expenses resulting from the enactment of the Tax Cuts and Jobs Act.
Its total revenues of $6.63 billion also surpassed the Zacks Consensus Estimate of $6.37 billion by 4.1%. Total backlog at the end of 2017 was $42.9 billion, down 5.5% from the year-ago period.
Northrop Grumman’s cash and cash equivalents as of Dec 31, 2017 were $12.2 billion, up from $2.54 billion as of Dec 31, 2016. The company expects to generate earnings in the range of $15.00-$15.25 per share (read more: Northrop Grumman Beats Q4 Earnings & Revenue Estimates).
5. Rockwell Collins’ adjusted earnings per share of $1.59 beat the Zacks Consensus Estimate of $1.53 by 3.9%, during first-quarter fiscal 2018. Reported earnings grew 30.3% from $1.22 a year ago.
The company’s total sales were $2,011 million, which topped the Zacks Consensus Estimate of $1,988 million by 1.2%.
As of Dec 31, 2017, Rockwell Collins’ cash and cash equivalents were $583 million compared with $703 million as of Sep 30, 2017. Cash used for operating activities at the end of the quarter was $259 million, compared with 101 million in the prior-year quarter (read more: Rockwell Collins Beats on Q1 Earnings, Sales Up Y/Y).
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: General Dynamics, Northrop Grumman, Raytheon, L3 Technologies and Rockwell Collins
For Immediate Release
Chicago, IL – Jan 30, 2018 – 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 General Dynamics Corp. (GD - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , Raytheon Co. , L3 Technologies, Inc. and Rockwell Collins Inc. .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
Defense Stock Roundup: Q4 Earnings for GD, NOC, RTN, LLL & More
The Q4 earnings season is in full swing, with almost 26% of S&P 500 companies having released their quarterly results. As of Jan 24, of the 89 S&P 500 members which revealed their earnings numbers, 80.9% delivered an earnings beat, while 74.2% surpassed revenue estimates.
Coming to the broader Aerospace sector’s performance, 9.1% of the defense stocks released earnings as of Jan 24, with an earnings beat ratio of 100% on 0.5% sales growth.
The impressive earnings results got reflected in the defense stock’s performance over the last five trading sessions. Major indices of the Aerospace-Defense space — the S&P 500 Aerospace & Defense (Industry) index rose 3.4%, while the Dow Jones U.S. Aerospace & Defense index grew 3.3% — during this period.
Among last week’s highlights, defense primes, General Dynamics Corp., Northrop Grumman Corp., Raytheon Co., L3 Technologies, Inc., Rockwell Collins Inc., and others have released their quarterly figures.
Recap of Last Week’s Key Stories
1. General Dynamics’ fourth-quarter 2017 earnings from continuing operations of $2.50 per share surpassed the Zacks Consensus Estimate of $2.37 by 5.5%. Reported earnings were up 6.8% from $2.36 recorded in the year-ago quarter.
However, the company’s total revenues of $8,277 million missed the Zacks Consensus Estimate of $8,437 million by 1.9%. Nevertheless, revenues were up 8.2% from $7,654 million in the year-ago quarter.
As of Dec 31, 2017, General Dynamics’ cash and cash equivalents were $2,983 million compared with $2,334 million as of Dec 31, 2016. The company’s cash flow from operating activities was $3,879 million for 2017 compared with $2,198 million in 2016 (read more:General Dynamics Beats Q4 Earnings, Revenues Up Y/Y).
2. Raytheon’s fourth-quarter 2017 adjusted earnings from continuing operations of $2.03 per share exceeded the Zacks Consensus Estimate of $2.02 by 0.5%.
The company’s reported earnings of $1.35 per share came in below the prior-year quarter’s equivalent of $1.88, owing to the Tax Cuts and Job Acts of 2017, which had an unfavorable impact of 59 cents on earnings.
The company’s fourth-quarter revenues of $6,783 million witnessed 8% year-over-year growth, which however missed the Zacks Consensus Estimate of $6,833.7 million by 0.7%.Total backlog at the end of 2017 was $38.2 billion, compared with $36.7 billion at the end of 2016.
Raytheon ended 2017 with cash and cash equivalents of $3,103 million, down from $3,303 million as of Dec 31, 2016 (read more: Raytheon Beats on Q4 Earnings, Issues '18 Outlook).
3. L3 Technologies’ fourth-quarter 2017 adjusted earnings of $2.35 per share from continuing operations topped the Zacks Consensus Estimate of $2.30 by 2.2%. The company reported earnings of $3.34, higher than the prior-year quarter’s equivalent of $2.32, led by a tax benefit of 99 cents.
Total revenues of $2.57 billion in the quarter beat the Zacks Consensus Estimate of $2.55 billion by 1.1%. However, the top line was down 3% year over year. Its funded backlog was $9 billion as of Dec 31, 2017, up 6% from $8.4 billion as of Dec 31, 2016.
As of Dec 31, 2017, L3 Technologies had $662 million in cash and cash equivalents compared with $363 million as of Dec 31, 2016. L3 Technologies raised its 2018 earnings outlook. The company now expects earnings in the range of $9.30-$9.50 per share (read more: L3 Technologies Q4 Earnings Top, Raises '18 EPS View).
4. Northrop Grumman’s fourth-quarter 2017 earnings of $2.82 per share surpassed the Zacks Consensus Estimate of $2.75 by 2.5%. Reported earnings were $1.01, down nearly 65.9% year over year, due to higher tax expenses resulting from the enactment of the Tax Cuts and Jobs Act.
Its total revenues of $6.63 billion also surpassed the Zacks Consensus Estimate of $6.37 billion by 4.1%. Total backlog at the end of 2017 was $42.9 billion, down 5.5% from the year-ago period.
Northrop Grumman’s cash and cash equivalents as of Dec 31, 2017 were $12.2 billion, up from $2.54 billion as of Dec 31, 2016. The company expects to generate earnings in the range of $15.00-$15.25 per share (read more: Northrop Grumman Beats Q4 Earnings & Revenue Estimates).
5. Rockwell Collins’ adjusted earnings per share of $1.59 beat the Zacks Consensus Estimate of $1.53 by 3.9%, during first-quarter fiscal 2018. Reported earnings grew 30.3% from $1.22 a year ago.
The company’s total sales were $2,011 million, which topped the Zacks Consensus Estimate of $1,988 million by 1.2%.
As of Dec 31, 2017, Rockwell Collins’ cash and cash equivalents were $583 million compared with $703 million as of Sep 30, 2017. Cash used for operating activities at the end of the quarter was $259 million, compared with 101 million in the prior-year quarter (read more: Rockwell Collins Beats on Q1 Earnings, Sales Up Y/Y).
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.