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Aerojet Rocketdyne (AJRD) Q2 Earnings Miss Estimates, Fall Y/Y

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Shares of Aerojet Rocketdyne Holdings, Inc. gained 1.4% to reach $41.07 on Aug 3, reflecting investor optimism following the company's second-quarter 2022 results.

The company reported second-quarter earnings per share (EPS) of 20 cents, which missed the Zacks Consensus Estimate of 47 cents by 57.5%. The bottom line also declined 63% year over year from 54 cents reported in the year-ago quarter.

Operational Performance

The company’s quarterly sales of $528.5 million declined 5.1% from the year-ago quarter’s $556.9 million. The top line also missed the Zacks Consensus Estimate by 7.3%. This year-over-year decrease in net sales was on account of a decline in both Aerospace and Defense as well as Real Estate segment sales.

Aerojet Rocketdyne’s backlog at the end of second-quarter 2022 totaled $6.9 billion, higher than $6.4 billion witnessed at the end of the first quarter of 2022. Of this, funded backlog amounted to $3.2 billion.

Total operating costs and expenses increased 3.7% to $500.3 million in the second quarter. Operating income of $28.2 million declined 62% from the prior-year period’s $69 million.

Segmental Performance

Aerospace & Defense: Revenues at this segment declined 5.1% year over year to $527.9 million from the previous year’s $556 million.

Real Estate: The segment generated revenues of $0.6 million compared with the year-ago quarter’s reported revenues of $0.9 million.

Financial Update

Aerojet Rocketdyne exited the second quarter with cash and cash equivalents of $560.3 million, down from $700.4 million as of Dec 31, 2021.

Long-term debt amounted to $276.7 million, down from $294.6 million as of Dec 31, 2021.

Operating cash outflow from continuing operations was $108.8 million as of Jun 30, 2022 against a cash inflow of $20.2 million in the year-ago period.

Free cash outflow at the end of the reported quarter was $120.3 million against the prior year’s free cash inflow of $7.9 million.

Zacks Rank

Aerojet Rocketdyne currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.

The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.

Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2022 adjusted earnings of $4.43 per share, which surpassed the Zacks Consensus Estimate of $4.38 by 1.1%. However, the bottom line declined 3.9% from the year-ago quarter’s $4.61 per share.

Total sales in the second quarter amounted to $1,355.8 million, which exceeded the Zacks Consensus Estimate of $1,352 million by 0.3%. The top line also improved 21% from $1,121 million reported a year ago.

Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.

Lockheed Martin’s top line declined 9.3% from $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.


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