Aerospace Earnings Previews: Boeing, Lockheed-Martin and More
Aerospace companies Boeing (NYSE: BA), General Dynamics (NYSE: GD), Lockheed-Martin (NYSE: LMT) and Northop Grumman (NYSE: NOC) are on tap to report their third-quarter results Wednesday, October 24, before the markets open.
Analysts predict that the Chicago-based maker of the 787 Dreamliner will report that revenue rose about 13 percent year-over-year to $20.03 billion. But per-share earnings are expected to come to $1.12 for the quarter, down from $1.46 per share in same quarter of last year. The consensus EPS estimate has ticked up in the past 60 days from $1.11. Boeing easily exceeded EPS expectations in the past four quarters; the positive surprise in the previous quarter was more than 13 percent.
Boeing's price to earnings (P/E) ratio is less than the industry average and the long-term EPS growth forecast is more than 10 percent. Over the past six months, the stock has outperformed General Dynamics but narrowly underperformed the Dow Jones Industrial average.
The consensus forecast calls for this leading defense contractor to post earnings of $1.78 per share on revenues of $8.04 billion. That compares with $1.83 per share and $7.85 billion in the year-ago period. The analysts' consensus EPS estimate has remained steady over the past 60 days. The Falls Church, Va.-based company offered a small positive surprise for EPS in the previous quarter, but a first quarter earnings miss ended a streak of earnings beats going back more than ten quarters.
The P/E ratio is less than that of Boeing, and General Dynamics has a long-term EPS growth forecast of almost nine percent. Over the past six months, the stock has underperformed the competitors featured here, as well as the Dow Jones Industrial average.
Analysts are looking for EPS that are about seven percent lower year-over-year to $1.85. Individual earnings estimates range from $1.77 to $1.95 per share. Revenue is also expected to have declined by more than seven percent to $ 11.18 billion. But the Bethesda, Md.-based maker of the F-16 Falcon and F-22 Raptor has topped analysts' earnings expectations for more than 10 quarters. The positive surprise in the previous quarter was almost 25 percent.
Here too the P/E ratio is less than the industry average, and the return on equity is more than 100 percent. Shares are trading near a multiyear high. Over the past six months, the stock's performance has been in line with the Dow Jones Industrial average.
Third-quarter per-share earnings are expected to come to $1.69 per share while revenues total $6.34 billion. That would be down from $1.86 per share and $6.61 billion in the equivalent period of last year. The consensus EPS estimate has remained unchanged over the past 60 days. Analysts underestimated EPS from Northrop Grumman, which developed the B-2 Stealth Bomber, for more than 10 quarters. The earnings beat in the previous quarter was more than 16 percent.
Northop Grumman has the lowest P/E ratio of the four companies featured here. But its long-term EPS growth forecast is only about five percent. Still, shares are trading near the 52-week high, and the stock has outperformed the competitors discussed here and the broader markets over the past six months.
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