The Q3 earnings cycle is drawing to a close, with results pending from only 15% of the S&P 500 members. As of Nov 4, 84.6% of the market cap of the S&P 500 index released their quarterly numbers, reflecting noticeable improvement from the last few quarters. Evidently, a 3.6% year-over-year increase in third-quarter earnings was observed on 2.4% higher revenues.
Coming to the Aerospace and Defense sector, we have seen Q3 results from 90.0% of the sector’s total market cap, so far. Reported results reveal an 18.8% improvement in earnings though revenues dropped 2.9%.
Looking ahead, we expect the sector to log an overall earnings improvement of 18.4% outweighing a minor 3.3% revenue drop. For more details, you may go through our Earnings Preview report.
Let’s take a look at a handful of defense stocks that are scheduled to report their third-quarter numbers on Nov 8.
Astronics Corporation (ATRO - Free Report) supplies advanced technologies and products to the global aerospace, defense and semiconductor industries. Our proven model does not conclusively show that Astronics will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Earnings ESP for Astronics is 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 45 cents. Moreover, Astronics has a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement.
With respect to its earnings surprise history, the company posted a positive surprise of 21.28% last quarter, reaching its average positive earnings surprise for the trailing four quarters to 2.24%.
Arotech Corporation (ARTX - Free Report) develops quality engineering and technology solutions that serve the defense and security space. Our proven model does not conclusively show a beat for Arotech despite its Zacks Rank #3. This is because the company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of a penny.
With respect to its earnings surprise history, the company posted a negative surprise of 200.00% last quarter, reaching its average positive earnings surprise for the trailing four quarters to 156.25%.Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
CPI Aerostructures Inc. (CVU - Free Report) is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the U.S. armed forces. Our proven model does not conclusively show that CPI Aerostructures will beat earnings this quarter as the company’s ESP is 0.00% (both Most Accurate estimate and Zacks Consensus Estimate are at 18 cents). Meanwhile, CPI Aerostructures has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
With respect to its earnings surprise history, the company posted a positive surprise of 40.00% last quarter. The average negative surprise for the last four quarters is 17.45%.
Confidential: Zacks' Best Investment Ideas
Would you like to see a hand-picked ""all-star"" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>