So far, two S&P 500 companies from the Aerospace sector have released their quarterly results in current earnings cycle, namely Lockheed Martin and Raytheon Technologies. Impressively both of them came up with better-than-expected earnings figure. Another cohort of major aerospace & defense stocks like Textron Inc. (TXT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and L3Harris Technologies (LHX - Free Report) are set to announce their earnings on Jul 28.
Factors that Influenced Aerospace & Defense Stocks
The continuous recovery in global air travel, both domestic and international, over the past few quarters is expected to boost the Q2 results of the aerospace and defense stocks, particularly those engaged in commercial aviation. Evidently, Boeing witnessed a solid year-over-year surge of 53.2% in its commercial shipments during the second quarter. With Boeing being the largest jet maker in the nation, we expect the Q2 results of the remaining aerospace majors to reflect a similar improvement in delivery trends. Such solid deliveries must have boosted the overall top-line growth of the Aerospace sector, which houses all aerospace and defense stocks.
On the other hand, stocks in this industry that are more focused on combat must have gained as a result of steady government support. Moreover, a steady order flow observed in the past couple of quarters, along with improved deliveries in recent times, buoyed by recovering economic trends are projected to have bolstered Q2 revenues of aerospace and defense stocks.
However, persistent headwinds like supply chain disruption along with some unfavorable project timing as the result of coronavirus might have an adverse impact on the overall Q2 results of some of the industry majors.
Q2 Projections
Aerospace sector Q2 earnings are expected to decline 7.9% from the prior-year quarter’s reported figure, while revenues are projected to inch up 0.4%.
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 three defense companies that are scheduled to report second-quarter 2022 earnings on Jul 28 and find out how things have shaped up prior to the announcements.
Textron’s Q2 results are likely to reflect mixed segmental performance. Notably, strong deliveries for Citation jets and commercial turboprops along with higher aftermarket volume are expected to have boosted its aviation segment’s results, while lower military volumes might have hurt Bell unit’s top-line performance.
Higher commercial deliveries, favorable pricing and increased operating leverage must have bolstered its bottom line in the soon-to-be-reported quarter (read more: Will Mixed Segment Performance Aid Textron's Q2 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.
Textron has an Earnings ESP of -0.38% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
So far, two S&P 500 companies from the Aerospace sector have released their quarterly results in current earnings cycle, namely Lockheed Martin and Raytheon Technologies. Impressively both of them came up with better-than-expected earnings figure. Another cohort of major aerospace & defense stocks like Textron Inc. (TXT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and L3Harris Technologies (LHX - Free Report) are set to announce their earnings on Jul 28.
Factors that Influenced Aerospace & Defense Stocks
The continuous recovery in global air travel, both domestic and international, over the past few quarters is expected to boost the Q2 results of the aerospace and defense stocks, particularly those engaged in commercial aviation. Evidently, Boeing witnessed a solid year-over-year surge of 53.2% in its commercial shipments during the second quarter. With Boeing being the largest jet maker in the nation, we expect the Q2 results of the remaining aerospace majors to reflect a similar improvement in delivery trends. Such solid deliveries must have boosted the overall top-line growth of the Aerospace sector, which houses all aerospace and defense stocks.
On the other hand, stocks in this industry that are more focused on combat must have gained as a result of steady government support. Moreover, a steady order flow observed in the past couple of quarters, along with improved deliveries in recent times, buoyed by recovering economic trends are projected to have bolstered Q2 revenues of aerospace and defense stocks.
However, persistent headwinds like supply chain disruption along with some unfavorable project timing as the result of coronavirus might have an adverse impact on the overall Q2 results of some of the industry majors.
Q2 Projections
Aerospace sector Q2 earnings are expected to decline 7.9% from the prior-year quarter’s reported figure, while revenues are projected to inch up 0.4%.
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 three defense companies that are scheduled to report second-quarter 2022 earnings on Jul 28 and find out how things have shaped up prior to the announcements.
Textron’s Q2 results are likely to reflect mixed segmental performance. Notably, strong deliveries for Citation jets and commercial turboprops along with higher aftermarket volume are expected to have boosted its aviation segment’s results, while lower military volumes might have hurt Bell unit’s top-line performance.
Higher commercial deliveries, favorable pricing and increased operating leverage must have bolstered its bottom line in the soon-to-be-reported quarter (read more: Will Mixed Segment Performance Aid Textron's Q2 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.
Textron has an Earnings ESP of -0.38% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Get the latest research report on NOC - FREE
Get the latest research report on TXT - FREE
Get the latest research report on LHX - FREE