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Redwire (RDW) Q1 Earnings Report Preview: What To Look For

RDW Cover Image

Aerospace and defense company Redwire (NYSE: RDW) will be announcing earnings results tomorrow morning. Here’s what investors should know.

Redwire missed analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $69.56 million, up 9.6% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.

Is Redwire a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Redwire’s revenue to decline 15.1% year on year to $74.54 million, a reversal from the 52.4% increase it recorded in the same quarter last year.

Redwire Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Redwire has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Redwire’s peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Astronics delivered year-on-year revenue growth of 11.3%, beating analysts’ expectations by 7.3%, and Curtiss-Wright reported revenues up 13%, topping estimates by 5%. Astronics traded up 16.6% following the results while Curtiss-Wright was also up 4.3%.

Read our full analysis of Astronics’s results here and Curtiss-Wright’s results here.

There has been positive sentiment among investors in the aerospace segment, with share prices up 9.9% on average over the last month. Redwire is up 25% during the same time and is heading into earnings with an average analyst price target of $25.80 (compared to the current share price of $11.35).

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