The Q3 earnings cycle is drawing to a close, with approximately 87.1% of the market cap of the S&P 500 index having released quarterly numbers as of Nov 4. Reported results reveal a 3.6% increase in third-quarter earnings on 2.4% higher revenues.
About 77 S&P 500 members will report results in the upcoming weeks. Overall earnings are anticipated to witness a 3% improvement on 1.5% higher revenues, with four of the 16 Zacks sectors witnessing an earnings decline this season. The picture should become clearer by the end of this week after the majority releases results. For more details, you may go through our Earnings Preview report.
Coming to the Aerospace and Defense sector, we have seen Q3 results from 90% of the sector’s total market cap so far. Reported results reveal an 18.8% improvement in earnings despite revenue deterioration of 2.9%. Looking ahead, we expect the sector to log an overall earnings improvement of 18.4% outweighing a 3.3% drop in revenues.
Let’s take a look at a couple of defense stocks that are scheduled to report their quarterly numbers on Nov 10.
CAE Inc. (CAE - Free Report) is a world leader in providing simulation and modeling technologies, and integrated training services to the civil aviation industry and defense forces around the globe.
The company is scheduled to release second-quarter fiscal 2017 results on Nov 10. It posted a positive earnings surprise of 25.00% in the preceding quarter.
CAE Inc. has an Earnings ESP 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 16 cents. The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our proven model does not conclusively show that CAE Inc. is likely to 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 or #3 (Hold) for this to happen. But that is not the case for CAE Inc.
Esterline Technologies Corp. (ESL - Free Report) is a specialized engineering and manufacturing company principally serving the aerospace and defense markets. It designs, manufactures and markets highly engineered products and systems for application within these industries.
The company is scheduled to report fourth-quarter fiscal 2016 results on Nov 10. It reported a positive earnings surprise of 6.15% last quarter. It has a Zacks Rank # 3.
Esterline Technologies has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.59. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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