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Defense Stocks to Watch for Earnings on Aug 3: ATRO & SPR
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After a burst of second-quarter earnings releases by a number of defense heavyweights last week, comprising The Boeing Co. (BA - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , General Dynamics Corp. (GD - Free Report) , Raytheon Co. and L-3 Communications Holdings Inc. , we are gearing up for the next batch of reports through this week.
So far, we have seen Q2 results from 95.6% of the defense sector’s total market cap, as of Jul 29. Reported results reveal a 28.8% decline in second-quarter earnings despite 2.7% growth in revenues. Though the trend is already clear, we should have a more complete picture by the end of this week. For more details, you may go through our Earnings Trends report.
Among the most important highlights, Boeing, the world's largest plane maker, reported its first quarterly net loss in nearly seven years. Its quarterly numbers were hit by after-tax charges in relation to three separate programs: the 787, the 747 and the KC-46 tanker aircraft program. Boeing's KC-46 tanker program for the U.S. Air Force is pushed back from Aug 2017 to Jan 2018 due to test flight problems. On the other hand, defense bigwig Lockheed Martin (LMT - Free Report) came up with both an earnings and revenue beat while Northrop Grumman and General Dynamics reported mixed results.
Thanks to mixed performances, we now expect the sector to log an earnings decline of 27.4% regardless of a minor 1.5% revenue growth.
Let’s take a look at a couple of defense stocks that are scheduled to report second-quarter earnings on Aug 3.
Astronics Corporation (ATRO - Free Report) makes specialized lighting and electronics for the cockpit, cabin and exteriors of military, commercial transport and private business jet aircraft.
Astronics is a Zacks Rank #3 (Hold) stock with an Earnings ESP of 0.00%. Last quarter, the company posted a negative earnings surprise of 12.00%. Our proven model does not conclusively show that Astronics is likely to beat on earnings this quarter.
The company’s first-quarter revenues declined 1.3% and it continues to expect the revenue level to largely look like the first quarter. Nevertheless, the second half of 2016 is likely to make up for the deficit.
On the first-quarter earnings call, the company lowered the high end of its original revenue guidance slightly for 2016 to account for the weakness in the Avionics product line. The company continues to face challenges in the Avionics product line.
Overall, Astronics expects the second half to be quite a bit stronger than the first half.
For the second quarter, the Zacks Consensus Estimate for earnings is 47 cents a share, reflecting a decrease of 38.96% year over year, while consensus revenues are pegged at $162.66 million, implying a 6.06% year-over-year decline.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) , a leading independent supplier of commercial airplane assemblies and components, will release its second-quarter numbers on Aug 3 before the market opens.
Spirit AeroSystems has a Zacks Rank #3 with an Earnings ESP of 0.00%. The company has refrained from providing any second-quarter guidance. Yet, growing worldwide demand for commercial airplanes is expected to boost sales of large aerostructures and components that are supplied by Spirit AeroSystems.
Meanwhile, Spirit AeroSystems has been quite active in the defense market and is looking to begin production of new models. This should open up new avenues of growth for the company in this space (read more: Spirit AeroSystems Q2 Earnings: Stock to Surprise?).
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Defense Stocks to Watch for Earnings on Aug 3: ATRO & SPR
After a burst of second-quarter earnings releases by a number of defense heavyweights last week, comprising The Boeing Co. (BA - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , General Dynamics Corp. (GD - Free Report) , Raytheon Co. and L-3 Communications Holdings Inc. , we are gearing up for the next batch of reports through this week.
So far, we have seen Q2 results from 95.6% of the defense sector’s total market cap, as of Jul 29. Reported results reveal a 28.8% decline in second-quarter earnings despite 2.7% growth in revenues. Though the trend is already clear, we should have a more complete picture by the end of this week. For more details, you may go through our Earnings Trends report.
Among the most important highlights, Boeing, the world's largest plane maker, reported its first quarterly net loss in nearly seven years. Its quarterly numbers were hit by after-tax charges in relation to three separate programs: the 787, the 747 and the KC-46 tanker aircraft program. Boeing's KC-46 tanker program for the U.S. Air Force is pushed back from Aug 2017 to Jan 2018 due to test flight problems. On the other hand, defense bigwig Lockheed Martin (LMT - Free Report) came up with both an earnings and revenue beat while Northrop Grumman and General Dynamics reported mixed results.
Thanks to mixed performances, we now expect the sector to log an earnings decline of 27.4% regardless of a minor 1.5% revenue growth.
Let’s take a look at a couple of defense stocks that are scheduled to report second-quarter earnings on Aug 3.
Astronics Corporation (ATRO - Free Report) makes specialized lighting and electronics for the cockpit, cabin and exteriors of military, commercial transport and private business jet aircraft.
Astronics is a Zacks Rank #3 (Hold) stock with an Earnings ESP of 0.00%. Last quarter, the company posted a negative earnings surprise of 12.00%. Our proven model does not conclusively show that Astronics is likely to beat on earnings this quarter.
The company’s first-quarter revenues declined 1.3% and it continues to expect the revenue level to largely look like the first quarter. Nevertheless, the second half of 2016 is likely to make up for the deficit.
On the first-quarter earnings call, the company lowered the high end of its original revenue guidance slightly for 2016 to account for the weakness in the Avionics product line. The company continues to face challenges in the Avionics product line.
Overall, Astronics expects the second half to be quite a bit stronger than the first half.
For the second quarter, the Zacks Consensus Estimate for earnings is 47 cents a share, reflecting a decrease of 38.96% year over year, while consensus revenues are pegged at $162.66 million, implying a 6.06% year-over-year decline.
ASTRONICS CORP Price and EPS Surprise
ASTRONICS CORP Price and EPS Surprise | ASTRONICS CORP Quote
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) , a leading independent supplier of commercial airplane assemblies and components, will release its second-quarter numbers on Aug 3 before the market opens.
Spirit AeroSystems has a Zacks Rank #3 with an Earnings ESP of 0.00%. The company has refrained from providing any second-quarter guidance. Yet, growing worldwide demand for commercial airplanes is expected to boost sales of large aerostructures and components that are supplied by Spirit AeroSystems.
Meanwhile, Spirit AeroSystems has been quite active in the defense market and is looking to begin production of new models. This should open up new avenues of growth for the company in this space (read more: Spirit AeroSystems Q2 Earnings: Stock to Surprise?).
SPIRIT AEROSYS Price and EPS Surprise
SPIRIT AEROSYS Price and EPS Surprise | SPIRIT AEROSYS Quote
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