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Defense Stocks' Q4 Earnings Slated for Jan 26: RTN, NOC, LLL
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The Q4 earnings season in the defense sector was jumpstarted by the quarterly release of Rockwell Collins, Inc. on Jan 20. Yesterday, sector behemoth Lockheed Martin Corp. (LMT - Free Report) came up with its results. Boeing Co. (BA - Free Report) and Textron Inc. (TXT - Free Report) are scheduled to post their fourth-quarter and full-year 2016 results today. This week, we expect to see quite a few of the major defense contractors to release their financial numbers.
As of Jan 20, 19.1% of the market cap of the S&P 500 index has reported quarterly results, revealing a 4.7% increase in earnings on 2.7% higher revenues. Overall, earnings are anticipated to record a 4.8% increase on 3.7% higher revenues, with five of the 16 Zacks sectors witnessing growth in the negative territory. The picture should become clearer by the end of this week, as a number of the index members are scheduled to report earnings results.
Only 3.2% of the Aerospace and Defense sector released their quarterly results, with 100% beating EPS estimates and none surpassing the revenue mark. Total Q4 earnings from the Aerospace and Defense sector are expected to improve 7.4% year over year on 1.4% higher revenues. For more details on quarterly releases, you can go through our Earnings Preview report.
Let’s take a look at three defense companies – Raytheon Company , Northrop Grumman Corporation (NOC - Free Report) andL3 Technologies, Inc. – all scheduled to release quarterly results before the opening bell on Jan 26.
Raytheon reported a positive earnings surprise of 9.15% in the last quarter. Notably, Raytheon outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 6.27%.
Our proven model shows that Raytheon 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 (Buy) or 3 (Hold) for this to happen. The company has the right combination of two key ingredients.
Raytheon has an Earnings ESP of +2.15%. That is because while the Most Accurate estimate is pegged at $1.90, the Zacks Consensus Estimate is lower at $1.86. The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. (Read more: Raytheon Company Q4 Earnings: A Beat in the Cards?)
Northrop Grumman reported a positive earnings surprise of 7.47% in the last quarter. Notably, Northrop Grumman outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 8.29%.
Northrop Grumman has an Earnings ESP of +0.80%. That is because while the Most Accurate estimate is pegged at $2.51, the Zacks Consensus Estimate is lower at $2.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has a Zacks Rank #2. Our proven model shows that Northrop Grumman is likely to beat earnings because it has the right combination of two key ingredients. (Read more: Northrop Grumman Q4 Earnings: A Beat in the Cards?)
Northrop Grumman Corporation Price and EPS Surprise
L3 Technologies posted a positive earnings surprise of 3.30% in the preceding quarter. It is worth noting that the company has outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 13.65%.
The Earnings ESP for L3 Technologies is +2.36% because the Most Accurate estimate is $2.17, while the Zacks Consensus Estimate is pegged lower at $2.12. The company has a Zacks Rank #3. L-3 Technologies is likely to beat earnings because it has the right combination of two key ingredients. (Read more: L-3 Technologies Q4 Earnings: Is a Beat in Store?)
L-3 Communications Holdings, Inc. Price and EPS Surprise
Stay tuned! Check later for our full write-up on earnings releases of these stocks.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Defense Stocks' Q4 Earnings Slated for Jan 26: RTN, NOC, LLL
The Q4 earnings season in the defense sector was jumpstarted by the quarterly release of Rockwell Collins, Inc. on Jan 20. Yesterday, sector behemoth Lockheed Martin Corp. (LMT - Free Report) came up with its results. Boeing Co. (BA - Free Report) and Textron Inc. (TXT - Free Report) are scheduled to post their fourth-quarter and full-year 2016 results today. This week, we expect to see quite a few of the major defense contractors to release their financial numbers.
As of Jan 20, 19.1% of the market cap of the S&P 500 index has reported quarterly results, revealing a 4.7% increase in earnings on 2.7% higher revenues. Overall, earnings are anticipated to record a 4.8% increase on 3.7% higher revenues, with five of the 16 Zacks sectors witnessing growth in the negative territory. The picture should become clearer by the end of this week, as a number of the index members are scheduled to report earnings results.
Only 3.2% of the Aerospace and Defense sector released their quarterly results, with 100% beating EPS estimates and none surpassing the revenue mark. Total Q4 earnings from the Aerospace and Defense sector are expected to improve 7.4% year over year on 1.4% higher revenues. For more details on quarterly releases, you can go through our Earnings Preview report.
Let’s take a look at three defense companies – Raytheon Company , Northrop Grumman Corporation (NOC - Free Report) and L3 Technologies, Inc. – all scheduled to release quarterly results before the opening bell on Jan 26.
Raytheon reported a positive earnings surprise of 9.15% in the last quarter. Notably, Raytheon outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 6.27%.
Our proven model shows that Raytheon 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 (Buy) or 3 (Hold) for this to happen. The company has the right combination of two key ingredients.
Raytheon has an Earnings ESP of +2.15%. That is because while the Most Accurate estimate is pegged at $1.90, the Zacks Consensus Estimate is lower at $1.86. The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. (Read more: Raytheon Company Q4 Earnings: A Beat in the Cards?)
Raytheon Company Price and EPS Surprise
Raytheon Company Price and EPS Surprise | Raytheon Company Quote
Northrop Grumman reported a positive earnings surprise of 7.47% in the last quarter. Notably, Northrop Grumman outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 8.29%.
Northrop Grumman has an Earnings ESP of +0.80%. That is because while the Most Accurate estimate is pegged at $2.51, the Zacks Consensus Estimate is lower at $2.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has a Zacks Rank #2. Our proven model shows that Northrop Grumman is likely to beat earnings because it has the right combination of two key ingredients. (Read more: Northrop Grumman Q4 Earnings: A Beat in the Cards?)
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation Price and EPS Surprise | Northrop Grumman Corporation Quote
L3 Technologies posted a positive earnings surprise of 3.30% in the preceding quarter. It is worth noting that the company has outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 13.65%.
The Earnings ESP for L3 Technologies is +2.36% because the Most Accurate estimate is $2.17, while the Zacks Consensus Estimate is pegged lower at $2.12. The company has a Zacks Rank #3. L-3 Technologies is likely to beat earnings because it has the right combination of two key ingredients. (Read more: L-3 Technologies Q4 Earnings: Is a Beat in Store?)
L-3 Communications Holdings, Inc. Price and EPS Surprise
L-3 Communications Holdings, Inc. Price and EPS Surprise | L-3 Communications Holdings, Inc. Quote
Stay tuned! Check later for our full write-up on earnings releases of these stocks.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>