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Defense Stocks Reporting Q3 Earnings on Nov 1: SPR and EGL
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Last week, the Wall Street saw Q3 earnings releases from almost 90% of the defense biggies like Northrop Grumman Corp. (NOC - Free Report) , The Boeing Company (BA - Free Report) , L-3 Communications Holdings, Inc. , United Technologies Corporation and Pentagon’s largest defense contractor Lockheed Martin Corp (LMT - Free Report) , to name a few. Notably, most of these corporations came up with an earnings beat this quarter.
As of Oct 28, 95.7% of the market cap of the Aerospace and Defense sector reported quarterly results, with 77.8% beating EPS estimates and 55.6% surpassing the revenue mark. No doubt, such bullish releases raise hopes of a much better performance for the sector, as we move into the second half of the Q3 reporting cycle.
Total Q3 earnings from the Aerospace and Defense securities are expected to be up 18.4% year over year on 2.9% higher revenues. When compared to the numbers of the broader S&P 500 member cohort, depicting expected earnings growth of 2% on 1.4% higher revenues, this sector’s numbers surely reflect favorable outcome. Want more details on quarterly releases? Go through our latest Earnings Preview report.
Now, let’s take a look at a couple of defense companies that are scheduled to report their third-quarter 2016 results on Nov 1.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) is a designer and manufacturer of aerostructures for both commercial and defense aircraft. Currently, favorable factors like continued growth in revenue passenger miles and considerably low fuel prices boosting airline traffic; along with growing global demand for commercial airplanes are expected to boost sales of large aerostructures and components offered by Spirit AeroSystems. Among the major highlights of the quarter, the installation of the world’s largest autoclave by Spirit Aerosystems at its Wichita, KS, facility is a notable one.
At present, the company carries a Zacks Rank #3 (Hold) and has an Earnings ESP of +0.94%, since the Most Accurate estimate is pegged at $1.08 while the Zacks Consensus Estimate is lower at $1.07. This is a meaningful and leading indicator of a likely positive earnings surprise. The combination of Spirit Aerosystems’ Zacks Rank #3 and +0.94% ESP makes us reasonably certain that it will beat earnings this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises (read more: Spirit AeroSystems Q3 Earnings: A Beat in the Cards?).
Engility Holdings, Inc. offers integrated solutions and services to the U.S. government, supporting customers throughout defense, intelligence, space, federal civilian and international communities. With respect to its third-quarter financial projections, the company expects to witness strong bookings, in line with its first-half 2016 outcome. Moreover, the company’s recently adopted strategies, namely, realizing sustainable organic growth; developing and retaining talent, and strengthening its balance sheet are expected to boost results going forward.
At present, Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Moreover, the company has an earnings ESP of 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 38 cents. Thus, our proven model does not conclusively predict an earnings beat for Engility as a stock needs to have both a positive earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 for this to happen.
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Defense Stocks Reporting Q3 Earnings on Nov 1: SPR and EGL
Last week, the Wall Street saw Q3 earnings releases from almost 90% of the defense biggies like Northrop Grumman Corp. (NOC - Free Report) , The Boeing Company (BA - Free Report) , L-3 Communications Holdings, Inc. , United Technologies Corporation and Pentagon’s largest defense contractor Lockheed Martin Corp (LMT - Free Report) , to name a few. Notably, most of these corporations came up with an earnings beat this quarter.
As of Oct 28, 95.7% of the market cap of the Aerospace and Defense sector reported quarterly results, with 77.8% beating EPS estimates and 55.6% surpassing the revenue mark. No doubt, such bullish releases raise hopes of a much better performance for the sector, as we move into the second half of the Q3 reporting cycle.
Total Q3 earnings from the Aerospace and Defense securities are expected to be up 18.4% year over year on 2.9% higher revenues. When compared to the numbers of the broader S&P 500 member cohort, depicting expected earnings growth of 2% on 1.4% higher revenues, this sector’s numbers surely reflect favorable outcome. Want more details on quarterly releases? Go through our latest Earnings Preview report.
Now, let’s take a look at a couple of defense companies that are scheduled to report their third-quarter 2016 results on Nov 1.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) is a designer and manufacturer of aerostructures for both commercial and defense aircraft. Currently, favorable factors like continued growth in revenue passenger miles and considerably low fuel prices boosting airline traffic; along with growing global demand for commercial airplanes are expected to boost sales of large aerostructures and components offered by Spirit AeroSystems. Among the major highlights of the quarter, the installation of the world’s largest autoclave by Spirit Aerosystems at its Wichita, KS, facility is a notable one.
At present, the company carries a Zacks Rank #3 (Hold) and has an Earnings ESP of +0.94%, since the Most Accurate estimate is pegged at $1.08 while the Zacks Consensus Estimate is lower at $1.07. This is a meaningful and leading indicator of a likely positive earnings surprise. The combination of Spirit Aerosystems’ Zacks Rank #3 and +0.94% ESP makes us reasonably certain that it will beat earnings this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises (read more: Spirit AeroSystems Q3 Earnings: A Beat in the Cards?).
SPIRIT AEROSYS Price and EPS Surprise
SPIRIT AEROSYS Price and EPS Surprise | SPIRIT AEROSYS Quote
Engility Holdings, Inc. offers integrated solutions and services to the U.S. government, supporting customers throughout defense, intelligence, space, federal civilian and international communities. With respect to its third-quarter financial projections, the company expects to witness strong bookings, in line with its first-half 2016 outcome. Moreover, the company’s recently adopted strategies, namely, realizing sustainable organic growth; developing and retaining talent, and strengthening its balance sheet are expected to boost results going forward.
At present, Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Moreover, the company has an earnings ESP of 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 38 cents. Thus, our proven model does not conclusively predict an earnings beat for Engility as a stock needs to have both a positive earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 for this to happen.
ENGILITY HLDGS Price and EPS Surprise
ENGILITY HLDGS Price and EPS Surprise | ENGILITY HLDGS Quote
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>