Aerospace and defense company BWX (NYSE:BWXT) will be reporting results tomorrow after market hours. Here’s what to look for.
BWX beat analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $681.5 million, up 11.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ operating margin and EPS estimates.
Is BWX a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting BWX’s revenue to grow 11.6% year on year to $658.5 million, slowing from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BWX has missed Wall Street’s revenue estimates twice over the last two years.
Looking at BWX’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Leidos delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 3%, and Leonardo DRS reported revenues up 15.5%, topping estimates by 4.7%. Leidos traded up 9.4% following the results while Leonardo DRS was also up 5.8%.
Read our full analysis of Leidos’s results here and Leonardo DRS’s results here.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices flat over the last month. BWX is up 5% during the same time and is heading into earnings with an average analyst price target of $116.10 (compared to the current share price of $122.05).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
