We recently issued an updated research report on Curtiss-Wright Corporation (CW - Free Report) . The company’s adjusted earnings in the third quarter of 2018 came in at $1.70 per share, which surpassed the Zacks Consensus Estimate by 7.6%.
Curtis-Wright expects to supply a variety of ancillary plant products and services to its new nuclear power plants, thereby reflecting solid demand for its power segment’s products. Meanwhile, the current U.S. administration is in favor of increasing budgetary provisions for the nation’s defense. This, in turn, should prove to be beneficial for defense OEMs like Curtiss-Wright.
What’s Driving the Stock?
Curtiss-Wright, being a leading supplier of COTS and COTS+ solutions, enjoys a buoyant position in the aerospace-defense market. In the ground defense market, the company witnesses solid international demand for its turret drive stabilization systems (TDSS). With rising global threats and more nations increasing their defense spending, long-term growth prospects for defense players like Curtiss-Wright are likely to be impressive.
The company enjoys solid growth opportunities, buoyed by continued strong funding for the U.S. shipbuilding program, particularly in terms of aircraft carrier, and the Columbia class and the Virginia class submarine programs.
Estimates for Curtiss-Wright have been revised upward over the past 30 days. Notably, the company’s bottom line exceeded the consensus mark in all of the trailing four quarters, with average beat of 19.86%.
However, the company is subject to interest rate risk related to the issuance of debt. Notably, material rise in long-term interest rates is a major risk for capital intensive stocks like Curtiss-Wright. With the current U.S. economy being in favor of expanding interest rate, the credit market may not turn out to be much favorable for Curtiss-Wright.
Curtiss-Wright Corporation Price and Consensus