Aerojet Rocketdyne Holdings, Inc reported third-quarter 2019 adjusted earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 23.9%. The bottom line also slumped 60.3% from 88 cents in the year-ago quarter.
Barring one-time adjustments, the company reported GAAP earnings of 39 cents per share, reflecting a decline of 52.4% from 82 cents in the prior-year quarter. This decrease can be attributed to declining sales and lower operating income in the quarter under review.
Operational Performance
Aerojet Rocketdyne’s third-quarter revenues of $481.8 million declined 3.4% from the year-ago quarter’s $498.8 million. The top line also missed the Zacks Consensus Estimate of $505 million by 4.6%.
Total backlog at the end of third-quarter 2019 was $4.5 billion compared with $4.1 billion as of Dec 31, 2018. Of this, funded backlog amounted to $2.1 billion compared with $1.8 billion at 2018-end.
Total operating expenses grew 9.3% year over year to $426.7 million in the third quarter. Meanwhile, operating income of $55.1 million plunged 49.1% from $108.3 million a year ago.
Segmental Performance
Aerospace & Defense: Revenues at this segment declined 3.5% year over year at $480 million. This can be primarily attributed to a decrease of $27.9 million in space programs, particularly the RS-68 program.
Meanwhile, the segment’s margin contracted 820 basis points (bps) to 13.5%.
Real Estate: The segment generated revenues of $1.8 million compared with the year-ago quarter’s $1.6 million.
Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise
Financial Update
Aerojet Rocketdyne exited the third quarter with cash and cash equivalents of $797 million, up from $735.3 million as of Dec 31, 2018.
Long-term debt amounted to $359.2 million as of Sep 30, 2019, up from $352.3 million as of Dec 31, 2018.
Net cash provided by operating activities amounted to $96.4 million as of Sep 30, 2019, compared with $97 million in the year-ago period.
Free cash flow at the end of the first nine months of 2019 was $80.1 million compared with $76.1 million in the same period last year.
Zacks Rank
Aerojet Rocketdyne has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corp (LMT - Free Report) reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 in the year-ago quarter.
Textron Inc (TXT - Free Report) reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line surged 55.7% from the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85.
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Aerojet Rocketdyne Holdings, Inc reported third-quarter 2019 adjusted earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 23.9%. The bottom line also slumped 60.3% from 88 cents in the year-ago quarter.
Barring one-time adjustments, the company reported GAAP earnings of 39 cents per share, reflecting a decline of 52.4% from 82 cents in the prior-year quarter. This decrease can be attributed to declining sales and lower operating income in the quarter under review.
Operational Performance
Aerojet Rocketdyne’s third-quarter revenues of $481.8 million declined 3.4% from the year-ago quarter’s $498.8 million. The top line also missed the Zacks Consensus Estimate of $505 million by 4.6%.
Total backlog at the end of third-quarter 2019 was $4.5 billion compared with $4.1 billion as of Dec 31, 2018. Of this, funded backlog amounted to $2.1 billion compared with $1.8 billion at 2018-end.
Total operating expenses grew 9.3% year over year to $426.7 million in the third quarter. Meanwhile, operating income of $55.1 million plunged 49.1% from $108.3 million a year ago.
Segmental Performance
Aerospace & Defense: Revenues at this segment declined 3.5% year over year at $480 million. This can be primarily attributed to a decrease of $27.9 million in space programs, particularly the RS-68 program.
Meanwhile, the segment’s margin contracted 820 basis points (bps) to 13.5%.
Real Estate: The segment generated revenues of $1.8 million compared with the year-ago quarter’s $1.6 million.
Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise
Financial Update
Aerojet Rocketdyne exited the third quarter with cash and cash equivalents of $797 million, up from $735.3 million as of Dec 31, 2018.
Long-term debt amounted to $359.2 million as of Sep 30, 2019, up from $352.3 million as of Dec 31, 2018.
Net cash provided by operating activities amounted to $96.4 million as of Sep 30, 2019, compared with $97 million in the year-ago period.
Free cash flow at the end of the first nine months of 2019 was $80.1 million compared with $76.1 million in the same period last year.
Zacks Rank
Aerojet Rocketdyne has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corp (LMT - Free Report) reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 in the year-ago quarter.
Textron Inc (TXT - Free Report) reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line surged 55.7% from the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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 >>
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