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Defense Stock Roundup: RTX, GD, NOC Beat on Q2 Earnings, BA Misses
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In the past five trading sessions, we witnessed Q2 results of some key defense players, which put up a mixed quarterly performance. The overall impact of quarterly results on the bourses remained impressive. The S&P 500 Aerospace & Defense (Industry) index improved 5.8%, while the Dow Jones U.S. Aerospace & Defense index went up 3.6% in the trailing five trading sessions.
1. Raytheon Technologies’ second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate by 3.6%. Moreover, the bottom-line figure improved 13% from the year-ago quarter’s figure.
The company’s second-quarter sales of $16,314 million missed the Zacks Consensus Estimate by 0.8%. The sales figure, however, rose 3% from $15,880 million recorded in the year-ago quarter.
2. Boeing incurred an adjusted loss of 37 cents per share for second-quarter 2022, much wider than the Zacks Consensus Estimate of a loss of 8 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 40 cents.
The company’s revenues amounted to $16.68 billion, which missed the Zacks Consensus Estimate by 6%. The top line also declined 2% from the year-ago quarter’s figure.
3. General Dynamics reported second-quarter 2022 EPS of $2.75, which beat the Zacks Consensus Estimate of $2.72 by 1.1%. Quarterly earnings increased 5.4% from $2.61 per share in the year-ago quarter.
The company’s second-quarter revenues of $9,189 million missed the Zacks Consensus Estimate of $9,388 million by 2.1%. Revenues slipped 0.3% from the year-ago quarter.
GD recorded a total backlog of $87.63 billion, up 0.5% from first-quarter 2022 backlog of $87.23 billion. As of Jul 3, 2022, GD generated cash from operating activities of $2,627 million (read more: General Dynamics Q2 Earnings Top, Revenues Fall Y/Y).
4. Northrop Grumman reported second-quarter 2022 earnings of $6.06 per share, which surpassed the Zacks Consensus Estimate of $6.03 by 0.5%. The bottom line however declined 6% from $6.42 reported in the year-ago quarter.
The company reported total sales of $8.80 billion, which missed the Zacks Consensus Estimate of $9.12 billion by 3.5%. Sales also decreased 4% from the year-ago quarter’s $9.15 billion.
Net cash outflow from operating activities at the end of the second quarter was $685 million against a net cash inflow of $962 million as of Jun 30, 2021 (read more: Northrop Grumman's Q2 Earnings Top, Sales Decline Y/Y).
5. Textron reported second-quarter 2022 earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate of 88 cents by 13.6%. The bottom line also improved 23.5% from the year-ago quarter’s figure.
Its total revenues came in at $3,154 million, which missed the Zacks Consensus Estimate by 2.4%. The reported figure also decreased 1.2% from the year-ago quarter’s $3,191 million.
Over the past five trading sessions, the defense biggies put up a solid show except for Raytheon. Boeing gained the most, with its share price rising 8%.
In the last six months, the industry's performance was also impressive, except for Boeing and Textron. Northrop gained the most with its shares down 19%, followed by L3Harris, which gained 14.8%.
The following table shows the price movement of the major defense players over the past five trading days and during the last six months.
Company
Past Week
Last 6 Months
LMT
6.00%
8.34%
BA
7.94%
-18.85%
GD
3.37%
6.25%
RTX
-1.41%
2.77%
NOC
4.92%
28.35%
TXT
2.27%
-4.52%
LHX
6.50%
14.81%
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Defense Stock Roundup: RTX, GD, NOC Beat on Q2 Earnings, BA Misses
In the past five trading sessions, we witnessed Q2 results of some key defense players, which put up a mixed quarterly performance. The overall impact of quarterly results on the bourses remained impressive. The S&P 500 Aerospace & Defense (Industry) index improved 5.8%, while the Dow Jones U.S. Aerospace & Defense index went up 3.6% in the trailing five trading sessions.
In the past week, Raytheon Technologies (RTX - Free Report) , The Boeing Company (BA - Free Report) , General Dynamics (GD - Free Report) , Northrop Grumman (NOC - Free Report) and Textron Inc. (TXT - Free Report) reported Q2 results.
Recap of Past Week’s Important Stories
1. Raytheon Technologies’ second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate by 3.6%. Moreover, the bottom-line figure improved 13% from the year-ago quarter’s figure.
The company’s second-quarter sales of $16,314 million missed the Zacks Consensus Estimate by 0.8%. The sales figure, however, rose 3% from $15,880 million recorded in the year-ago quarter.
Its free cash flow was $844 million at the end of second-quarter 2022 compared with $1,302 million at the end of second-quarter 2021 (read more: Raytheon Technologies Q2 Earnings Beat, Sales Miss).
2. Boeing incurred an adjusted loss of 37 cents per share for second-quarter 2022, much wider than the Zacks Consensus Estimate of a loss of 8 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 40 cents.
The company’s revenues amounted to $16.68 billion, which missed the Zacks Consensus Estimate by 6%. The top line also declined 2% from the year-ago quarter’s figure.
Its backlog at the end of second-quarter 2022 increased to $371.73 billion from $370.84 billion at the end of first-quarter 2022 (read more: Boeing Q2 Earnings Miss Estimates, Revenues Decline Y/Y).
3. General Dynamics reported second-quarter 2022 EPS of $2.75, which beat the Zacks Consensus Estimate of $2.72 by 1.1%. Quarterly earnings increased 5.4% from $2.61 per share in the year-ago quarter.
The company’s second-quarter revenues of $9,189 million missed the Zacks Consensus Estimate of $9,388 million by 2.1%. Revenues slipped 0.3% from the year-ago quarter.
GD recorded a total backlog of $87.63 billion, up 0.5% from first-quarter 2022 backlog of $87.23 billion. As of Jul 3, 2022, GD generated cash from operating activities of $2,627 million (read more: General Dynamics Q2 Earnings Top, Revenues Fall Y/Y).
4. Northrop Grumman reported second-quarter 2022 earnings of $6.06 per share, which surpassed the Zacks Consensus Estimate of $6.03 by 0.5%. The bottom line however declined 6% from $6.42 reported in the year-ago quarter.
The company reported total sales of $8.80 billion, which missed the Zacks Consensus Estimate of $9.12 billion by 3.5%. Sales also decreased 4% from the year-ago quarter’s $9.15 billion.
Net cash outflow from operating activities at the end of the second quarter was $685 million against a net cash inflow of $962 million as of Jun 30, 2021 (read more: Northrop Grumman's Q2 Earnings Top, Sales Decline Y/Y).
5. Textron reported second-quarter 2022 earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate of 88 cents by 13.6%. The bottom line also improved 23.5% from the year-ago quarter’s figure.
Its total revenues came in at $3,154 million, which missed the Zacks Consensus Estimate by 2.4%. The reported figure also decreased 1.2% from the year-ago quarter’s $3,191 million.
As of Jul 2, 2022, cash and cash equivalents totaled $1,764 million compared with $1,922 million as of Jan 1, 2022 (read more: Textron Q2 Earnings Beat Estimates, Revenues Drop Y/Y).
Performance
Over the past five trading sessions, the defense biggies put up a solid show except for Raytheon. Boeing gained the most, with its share price rising 8%.
In the last six months, the industry's performance was also impressive, except for Boeing and Textron. Northrop gained the most with its shares down 19%, followed by L3Harris, which gained 14.8%.
The following table shows the price movement of the major defense players over the past five trading days and during the last six months.