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Aerojet Rocketdyne (AJRD) Q3 Earnings Top Estimates, Fall Y/Y

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Shares of Aerojet Rocketdyne Holdings, Inc. gained 0.5% to reach $48.69 on Nov 2, following the company's third-quarter 2022 results.

The company reported third-quarter earnings per share (EPS) of 45 cents, which surpassed the Zacks Consensus Estimate of 44 cents by 2.3%. The bottom line, however, declined 22.4% year over year from 58 cents reported in the year-ago quarter.

Operational Performance

The company’s quarterly sales of $549.8 million inched up 0.8% from the year-ago quarter’s $545.3 million. The top line missed the Zacks Consensus Estimate by 1.6%. The year-over-year increase in net sales was on account of an improvement in Aerospace and Defense segment sales.

Aerojet Rocketdyne’s backlog at the end of third-quarter 2022 totaled $6.7 billion, lower than $6.9 billion witnessed at the end of the second quarter of 2022. Of this, funded backlog amounted to $3 billion.

Total operating costs and expenses increased 4.8% to $496.5 million in the third quarter. Operating income of $53.3 million declined 25.4% from the prior-year period’s $71.4 million.

Segmental Performance

Aerospace & Defense: Revenues at this segment rose 0.8% year over year to $549.2 million from the previous year’s $544.7 million.

Real Estate: The segment generated revenues of $0.6 million, in line with the year-ago quarter’s reported revenues.

Financial Update

Aerojet Rocketdyne exited the third quarter with cash and cash equivalents of $334.5 million, down from $700.4 million as of Dec 31, 2021.

Long-term debt amounted to $292.1 million, down from $294.6 million as of Dec 31, 2021.

Operating cash outflow from continuing operations was $73.8 million as of Sep 30, 2022 against a cash inflow of $95.4 million in the year-ago period.

Free cash outflow at the end of the reported quarter was $98 million against the prior year’s free cash inflow of $78.1 million.

Zacks Rank

Aerojet Rocketdyne currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin (LMT - Free Report) reported third-quarter 2022 adjusted earnings of $6.87 per share, which surpassed the Zacks Consensus Estimate of $6.58 by 4.4%. The bottom line also improved 4.1% year over year.

Lockheed Martin’s net sales amounted to $16.58 billion, which missed the Zacks Consensus Estimate of $16.82 billion by 1.4%. The top line, however, rose 3.5% from $16.03 billion reported in the year-ago quarter.

Raytheon Technologies’ (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom-line figure dropped 4% year over year.

The company’s third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. Raytheon’s sales, however, rose 5% from $16,213 million recorded in the year-ago quarter.

Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved a solid 153.8% year over year.

In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, Hexcel’s top line witnessed an improvement of 9.3% from the year-ago quarter.


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