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Aerospace Stocks to Watch for Q4 Earnings on Jan 26: BA, GD & HXL
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The Q4 earnings season for aerospace stocks is going to start today with Lockheed Martin and Raytheon Technologies scheduled to release their quarterly figures, before market open. A handful of major aerospace players like Boeing (BA - Free Report) , General Dynamics (GD - Free Report) and Hexcel (HXL - Free Report) are set to reveal their Q4 numbers this week.
Factors that Influenced Aerospace Stocks
A slow but steady recovery in global air travel is expected to have boosted the quarterly results of the aerospace stocks in the fourth quarter. Boeing witnessed a solid year-over-year surge of 67.8% in its commercial shipment during the fourth quarter. With Boeing being the largest jet maker in the nation, we expect Q4 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.
On the other hand, aerospace stocks that are more focused on combat must have also 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 Q4 revenues of aerospace stocks.
However, persistent headwinds like supply chain disruption along with the slow pace of cash inflow within the industry might adversely impact the overall Q4 results of some of the aerospace companies.
Considering the aforementioned factors, we remain mostly optimistic about the overall Q4 performance of the Aerospace sector, which also includes defense stocks.
Q4 Projections
Aerospace sector Q4 earnings are expected to significantly improve when compared to the prio-year quarter’s reported figure, while revenues are projected to be up 3.7%.
For more details on quarterly releases, you can go through the latest Earnings Preview.
Aerospace Stocks to Watch
Let's take a look at three defense companies that are scheduled to report fourth-quarter 2021 earnings on Jan 26 and find out how things have shaped up prior to the announcements.
Boeing’s fourth-quarter deliveries reflected a solid 67.8% surge in commercial shipments from the year-ago reported figure. Defense shipments also improved 38.2% year over year. Such solid delivery numbers from manufacturing companies like Boeing make us optimistic about the jet maker’s overall fourth-quarter results.
Increased airline flight operations are expected to have boosted aftermarket commercial jet services revenues for Boeing in the fourth quarter of 2021. With the majority of its segments expected to contribute favorably toward the aerospace giant’s fourth-quarter results, we remain optimistic about its revenue and earnings growth (read more: Improved Product Deliveries to Aid Boeing in Q4 Earnings).
Boeing has an Earnings ESP of -37.78% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Dynamics’ Q4 results are expected to reflect solid segmental performance from most of its segments, which along with a favorable product mix and continued cost reduction efforts are expected to have benefited its fourth-quarter earnings.
However, increased research and development expenses associated with ongoing product development efforts, including flight test activities for the G700, are likely to have had an adverse impact on General Dynamics’ soon-to-be-reported quarter earnings. Also increased production rate might have pushed up its cost of production, thereby weighing on the quarterly bottom-line performance.
Hexcel registered a four-quarter average earnings surprise of 200.00%. The Zacks consensus estimate for HXL’s Q4 earnings, pegged at 12 cents, indicates a year-over-year improvement of 166.7%.
The Zacks Consensus Estimate for HXL’s Q4 revenues, pegged at $341.6 million, implies a year-over-year improvement of 15.5%. Hexcel currently has an Earnings ESP of +11.24% and a Zacks Rank #3.
Image: Bigstock
Aerospace Stocks to Watch for Q4 Earnings on Jan 26: BA, GD & HXL
The Q4 earnings season for aerospace stocks is going to start today with Lockheed Martin and Raytheon Technologies scheduled to release their quarterly figures, before market open. A handful of major aerospace players like Boeing (BA - Free Report) , General Dynamics (GD - Free Report) and Hexcel (HXL - Free Report) are set to reveal their Q4 numbers this week.
Factors that Influenced Aerospace Stocks
A slow but steady recovery in global air travel is expected to have boosted the quarterly results of the aerospace stocks in the fourth quarter. Boeing witnessed a solid year-over-year surge of 67.8% in its commercial shipment during the fourth quarter. With Boeing being the largest jet maker in the nation, we expect Q4 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.
On the other hand, aerospace stocks that are more focused on combat must have also 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 Q4 revenues of aerospace stocks.
However, persistent headwinds like supply chain disruption along with the slow pace of cash inflow within the industry might adversely impact the overall Q4 results of some of the aerospace companies.
Considering the aforementioned factors, we remain mostly optimistic about the overall Q4 performance of the Aerospace sector, which also includes defense stocks.
Q4 Projections
Aerospace sector Q4 earnings are expected to significantly improve when compared to the prio-year quarter’s reported figure, while revenues are projected to be up 3.7%.
For more details on quarterly releases, you can go through the latest Earnings Preview.
Aerospace Stocks to Watch
Let's take a look at three defense companies that are scheduled to report fourth-quarter 2021 earnings on Jan 26 and find out how things have shaped up prior to the announcements.
Boeing’s fourth-quarter deliveries reflected a solid 67.8% surge in commercial shipments from the year-ago reported figure. Defense shipments also improved 38.2% year over year. Such solid delivery numbers from manufacturing companies like Boeing make us optimistic about the jet maker’s overall fourth-quarter results.
Increased airline flight operations are expected to have boosted aftermarket commercial jet services revenues for Boeing in the fourth quarter of 2021. With the majority of its segments expected to contribute favorably toward the aerospace giant’s fourth-quarter results, we remain optimistic about its revenue and earnings growth (read more: Improved Product Deliveries to Aid Boeing in Q4 Earnings).
The Boeing Company Price and EPS Surprise
The Boeing Company price-eps-surprise | The Boeing Company Quote
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.
Boeing has an Earnings ESP of -37.78% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Dynamics’ Q4 results are expected to reflect solid segmental performance from most of its segments, which along with a favorable product mix and continued cost reduction efforts are expected to have benefited its fourth-quarter earnings.
However, increased research and development expenses associated with ongoing product development efforts, including flight test activities for the G700, are likely to have had an adverse impact on General Dynamics’ soon-to-be-reported quarter earnings. Also increased production rate might have pushed up its cost of production, thereby weighing on the quarterly bottom-line performance.
General Dynamics has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) (read more: Will Increased Opex Hurt General Dynamics Q4 Earnings?).
General Dynamics Corporation Price and EPS Surprise
General Dynamics Corporation price-eps-surprise | General Dynamics Corporation Quote
Hexcel registered a four-quarter average earnings surprise of 200.00%. The Zacks consensus estimate for HXL’s Q4 earnings, pegged at 12 cents, indicates a year-over-year improvement of 166.7%.
The Zacks Consensus Estimate for HXL’s Q4 revenues, pegged at $341.6 million, implies a year-over-year improvement of 15.5%. Hexcel currently has an Earnings ESP of +11.24% and a Zacks Rank #3.
Hexcel Corporation Price and EPS Surprise
Hexcel Corporation price-eps-surprise | Hexcel Corporation Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.