Last week, we saw Textron Inc. (TXT - Free Report) kick-starting the Q3 earnings season for the defense sector with its quarterly financial release. Today, sector behemoth Lockheed Martin Corp. (LMT - Free Report) is scheduled to come up with third-quarter results. Several other majors in this space are expected to report third-quarter results this week.
As of Oct 21, 29.7% of the market cap of the S&P 500 index has reported quarterly results, marking a 3.3% increase in earnings on 1.8% higher revenues. Overall, earnings are anticipated to record a 0.1% increase on 1.5% higher revenues, with 7 of the 16 Zacks sectors witnessing growth in the negative territory. The picture should become clearer by the end of this week after the scheduled earnings releases by the majority of the index members.
Notably, projections for the aerospace and defense sector hint at a dismal quarter, in fact, worse than the overall forecast for the S&P 500 cohort. Sector earnings are likely to decline 1.3% on 3.3% deterioration in revenues. For more details on quarterly releases, you can go through our Earnings Preview report.
Let’s take a look at five defense companies – The Boeing Co. (BA - Free Report) , General Dynamics Corporation (GD - Free Report) , Northrop Grumman Corporation (NOC - Free Report) , FLIR Systems, Inc. and Curtiss-Wright Corporation (CW - Free Report) – all scheduled to release quarterly results before the opening bell on Oct 26.
Boeing posted a positive earnings surprise of 50.00% in the preceding quarter.
Our proven model shows that Boeing is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen and Boeing has the right mix. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Boeing carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. The company has an Earnings ESP of +0.38% because the Most Accurate estimate stands at $2.64, while the Zacks Consensus Estimate is pegged slightly lower at $2.63. (Read more: Boeing Q3 Earnings: Stock Poised to Beat Estimates
General Dynamics, a Zacks Rank #3 stock, posted a positive earnings surprise of 6.09% last quarter.
The company has an Earnings ESP of +0.84%. That is because the Most Accurate estimate is $2.39, while the Zacks Consensus Estimate is pegged lower at $2.37. (Read more: General Dynamics Q3 Earnings: Will It Beat Again?)
Northrop Grumman reported a positive earnings surprise of 4.00% in the prior quarter. It has a Zacks Rank # 3.
The company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.81. (Read more: Can Northrop Pull a Surprise this Earnings Season?)
FLIR Systems carries a Zacks Rank #3. The company has reported a negative earnings surprise of 2.86% last quarter.
FLIR Systems has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 44 cents. (Read more: FLIR Systems' Q3 Earnings: What's in the Cards?)
Curtiss-Wright has a Zacks Rank #4. The company has reported a positive earnings surprise of 6.02% in the previous quarter.
The company has an Earnings ESP of -0.99%. That is because the Most Accurate estimate is $1.00, while the Zacks Consensus Estimate is pegged higher at $1.01. Note that Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stay tuned! Check later for our full write-up on earnings releases of these stocks.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Last week, we saw Textron Inc. (TXT - Free Report) kick-starting the Q3 earnings season for the defense sector with its quarterly financial release. Today, sector behemoth Lockheed Martin Corp. (LMT - Free Report) is scheduled to come up with third-quarter results. Several other majors in this space are expected to report third-quarter results this week.
As of Oct 21, 29.7% of the market cap of the S&P 500 index has reported quarterly results, marking a 3.3% increase in earnings on 1.8% higher revenues. Overall, earnings are anticipated to record a 0.1% increase on 1.5% higher revenues, with 7 of the 16 Zacks sectors witnessing growth in the negative territory. The picture should become clearer by the end of this week after the scheduled earnings releases by the majority of the index members.
Notably, projections for the aerospace and defense sector hint at a dismal quarter, in fact, worse than the overall forecast for the S&P 500 cohort. Sector earnings are likely to decline 1.3% on 3.3% deterioration in revenues. For more details on quarterly releases, you can go through our Earnings Preview report.
Let’s take a look at five defense companies – The Boeing Co. (BA - Free Report) , General Dynamics Corporation (GD - Free Report) , Northrop Grumman Corporation (NOC - Free Report) , FLIR Systems, Inc. and Curtiss-Wright Corporation (CW - Free Report) – all scheduled to release quarterly results before the opening bell on Oct 26.
Boeing posted a positive earnings surprise of 50.00% in the preceding quarter.
Our proven model shows that Boeing is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen and Boeing has the right mix. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Boeing carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. The company has an Earnings ESP of +0.38% because the Most Accurate estimate stands at $2.64, while the Zacks Consensus Estimate is pegged slightly lower at $2.63. (Read more: Boeing Q3 Earnings: Stock Poised to Beat Estimates
General Dynamics, a Zacks Rank #3 stock, posted a positive earnings surprise of 6.09% last quarter.
The company has an Earnings ESP of +0.84%. That is because the Most Accurate estimate is $2.39, while the Zacks Consensus Estimate is pegged lower at $2.37. (Read more: General Dynamics Q3 Earnings: Will It Beat Again?)
Northrop Grumman reported a positive earnings surprise of 4.00% in the prior quarter. It has a Zacks Rank # 3.
The company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.81. (Read more: Can Northrop Pull a Surprise this Earnings Season?)
FLIR Systems carries a Zacks Rank #3. The company has reported a negative earnings surprise of 2.86% last quarter.
FLIR Systems has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 44 cents. (Read more: FLIR Systems' Q3 Earnings: What's in the Cards?)
Curtiss-Wright has a Zacks Rank #4. The company has reported a positive earnings surprise of 6.02% in the previous quarter.
The company has an Earnings ESP of -0.99%. That is because the Most Accurate estimate is $1.00, while the Zacks Consensus Estimate is pegged higher at $1.01. Note that Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stay tuned! Check later for our full write-up on earnings releases of these stocks.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BA - FREE
Get the latest research report on LMT - FREE
Get the latest research report on NOC - FREE
Get the latest research report on GD - FREE
Get the latest research report on TXT - FREE
Get the latest research report on CW - FREE