Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Byrna (NASDAQ: BYRN) and the best and worst performers in the aerospace and defense industry.
Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.
The 30 aerospace and defense stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 1.3% above.
Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.
Byrna (NASDAQ: BYRN)
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
Byrna reported revenues of $20.85 million, up 194% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates.
Management CommentaryByrna CEO Bryan Ganz stated: “In the third quarter, we generated $20.9 million in revenue while also improving our gross margin and operating leverage. This performance underscores the continued impact of our celebrity influencer strategy, which has driven increasing brand recognition and contributed to the growing normalization of our product category.
Byrna pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 16.5% since reporting and currently trades at $20.
Best Q3: Ducommun (NYSE: DCO)
California’s oldest company, Ducommun (NYSE: DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Ducommun reported revenues of $201.4 million, up 2.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates.
The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $66.52.
Is now the time to buy Ducommun? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Huntington Ingalls (NYSE: HII)
Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE: HII) develops marine vessels and their mission systems and maintenance services.
Huntington Ingalls reported revenues of $2.75 billion, down 2.4% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 19.9% since the results and currently trades at $201.02.
Read our full analysis of Huntington Ingalls’s results here.
Textron (NYSE: TXT)
Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.43 billion, up 2.5% year on year. This result came in 2.7% below analysts' expectations. Overall, it was a disappointing quarter as it also logged full-year EPS guidance missing analysts’ expectations.
The stock is up 4.1% since reporting and currently trades at $90.44.
Read our full, actionable report on Textron here, it’s free.
Redwire (NYSE: RDW)
Based in Jacksonville, Florida, Redwire (NYSE: RDW) is a provider of systems and components used in space infrastructure.
Redwire reported revenues of $68.64 million, up 9.6% year on year. This number missed analysts’ expectations by 2.8%. It was a softer quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.
The stock is up 68.3% since reporting and currently trades at $14.47.
Read our full, actionable report on Redwire here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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