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Aerospace & Defense ETFs to Track Amid Q2 Earnings
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The uptrend in theAerospace & Defense industry is mapped by the performance of the S&P Aerospace & Defense Select Industry Index, which has added 20.56% over the past year, surpassing the S&P 500's 20.34% gain in the same period. With escalating geopolitical tensions, the global aerospace and defense sector is poised to witness significant growth in the coming years.
According to Statista, global military spending amounted to $2.44 trillion in 2023, with the Unites States accounting for about 40% of the global spending. U.S. military spending is projected to increase annually, highlighting growth opportunities in the sector.
Below, we highlight Q1 earnings results of a few renowned U.S. Aerospace – Defense Industry players.
Northrop Grumman
Northrop Grumman (NOC - Free Report) reported second-quarter 2024 earnings of $6.36 per share, which beat the Zacks Consensus Estimate of $5.95 by 6.9%. The bottom line increased 19.1% from $5.34 recorded in the year-ago quarter, driven by an increase in operating income and sales.
NOC’s total sales of $10.22 billion beat the Zacks Consensus Estimate of $10.07 billion by 1.4%. The top line increased 6.7% from $9.58 billion reported in the year-ago quarter, driven by robust segmental sales growth. The company’s operating income during the quarter totaled $1.09 billion, up 13% from $967 million in the prior-year quarter.
The company partially raised its 2024 guidance, projecting revenues in the range of $41-$41.40 billion and adjusted earnings in the band of $24.90-$25.30 per share. Shares of NOC have gained about 10% over the past two weeks (as of Aug 1).
RTX Corporation
RTX Corporation (RTX - Free Report) reported second-quarter 2024 adjusted EPS of $1.41, which beat the Zacks Consensus Estimate of $1.29 by 9.3%. The bottom line also improved 9.3% from the year-ago quarter’s level of $1.29.
RTX’s first-quarter net sales totaled $19.72 billion, which surpassed the Zacks Consensus Estimate of $19.31 billion by 2.2%. The top line also improved 7.7% from $18.31 billion recorded in the second quarter of 2023, driven by higher segmental sales growth. RTX posted an adjusted operating profit of $2.56 billion, up 14.1% from the year-ago quarter’s reported figure.
RTX updated its guidance for 2024, with projected adjusted EPS in the band of $5.35-$5.45 and sales of $78.75-$79.50 billion. Shares of RTX have gained about 13% over the past two weeks (as of Aug 1).
General Dynamics
General Dynamics (GD - Free Report) reported second-quarter 2024 EPS of $3.26, which missed the Zacks Consensus Estimate of $3.30 by 1.2%. However, the figure increased 20.7% from $2.70 per share recorded in the year-ago quarter, driven by sales growth as well as an improvement in operating earnings.
GD’s revenues of $11.98 billion in the reported quarter beat the Zacks Consensus Estimate of $11.52 billion by 3.9%. The top line showed an impressive improvement of 18% from the prior-year reported figure, driven by increased segmental revenues. GD’s operating earnings totaled $1.16 billion, up 20.2% from the year-ago quarter’s $962 million.
The long-term debt (as of Jun 30, 2024) was $7.26 billion, down from the 2023-end level of $8.75 billion. General Dynamics recorded a total backlog of $91.30 billion, down from the first-quarter level of $93.73 billion. The funded backlog at the end of the reported quarter was $74.41 billion.
Shares of GD have gained about 1.8% over the past two weeks (as of Aug 1).
Lockheed Martin
Lockheed Martin (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter, driven by segmental revenue sales growth.
Lockheed has partially raised its financial guidance for 2024, expecting revenues in the range of $70.50-$71.50 billion. The company also continues to project EPS in the range of $26.10-$26.60. Shares of LMT have gained about 14% over the past two weeks (as of Aug 1).
ETFs in Focus
For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report) has gained 14.23% over the past year and 8.8% over the past month.
Invesco Aerospace & Defense ETF (PPA - Free Report) has gained 22.23% over the past year and 7.2% over the past month.
SPDR S&P Aerospace & Defense ETF (XAR - Free Report) has gained 15.85% over the past year and 8.4% over the past month.
Global X Defense Tech ETF (SHLD - Free Report) has gained 0.12% over the past three months and 7.60% over the past month.
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Aerospace & Defense ETFs to Track Amid Q2 Earnings
The uptrend in theAerospace & Defense industry is mapped by the performance of the S&P Aerospace & Defense Select Industry Index, which has added 20.56% over the past year, surpassing the S&P 500's 20.34% gain in the same period. With escalating geopolitical tensions, the global aerospace and defense sector is poised to witness significant growth in the coming years.
According to Statista, global military spending amounted to $2.44 trillion in 2023, with the Unites States accounting for about 40% of the global spending. U.S. military spending is projected to increase annually, highlighting growth opportunities in the sector.
Below, we highlight Q1 earnings results of a few renowned U.S. Aerospace – Defense Industry players.
Northrop Grumman
Northrop Grumman (NOC - Free Report) reported second-quarter 2024 earnings of $6.36 per share, which beat the Zacks Consensus Estimate of $5.95 by 6.9%. The bottom line increased 19.1% from $5.34 recorded in the year-ago quarter, driven by an increase in operating income and sales.
NOC’s total sales of $10.22 billion beat the Zacks Consensus Estimate of $10.07 billion by 1.4%. The top line increased 6.7% from $9.58 billion reported in the year-ago quarter, driven by robust segmental sales growth. The company’s operating income during the quarter totaled $1.09 billion, up 13% from $967 million in the prior-year quarter.
The company partially raised its 2024 guidance, projecting revenues in the range of $41-$41.40 billion and adjusted earnings in the band of $24.90-$25.30 per share. Shares of NOC have gained about 10% over the past two weeks (as of Aug 1).
RTX Corporation
RTX Corporation (RTX - Free Report) reported second-quarter 2024 adjusted EPS of $1.41, which beat the Zacks Consensus Estimate of $1.29 by 9.3%. The bottom line also improved 9.3% from the year-ago quarter’s level of $1.29.
RTX’s first-quarter net sales totaled $19.72 billion, which surpassed the Zacks Consensus Estimate of $19.31 billion by 2.2%. The top line also improved 7.7% from $18.31 billion recorded in the second quarter of 2023, driven by higher segmental sales growth. RTX posted an adjusted operating profit of $2.56 billion, up 14.1% from the year-ago quarter’s reported figure.
RTX updated its guidance for 2024, with projected adjusted EPS in the band of $5.35-$5.45 and sales of $78.75-$79.50 billion. Shares of RTX have gained about 13% over the past two weeks (as of Aug 1).
General Dynamics
General Dynamics (GD - Free Report) reported second-quarter 2024 EPS of $3.26, which missed the Zacks Consensus Estimate of $3.30 by 1.2%. However, the figure increased 20.7% from $2.70 per share recorded in the year-ago quarter, driven by sales growth as well as an improvement in operating earnings.
GD’s revenues of $11.98 billion in the reported quarter beat the Zacks Consensus Estimate of $11.52 billion by 3.9%. The top line showed an impressive improvement of 18% from the prior-year reported figure, driven by increased segmental revenues. GD’s operating earnings totaled $1.16 billion, up 20.2% from the year-ago quarter’s $962 million.
The long-term debt (as of Jun 30, 2024) was $7.26 billion, down from the 2023-end level of $8.75 billion. General Dynamics recorded a total backlog of $91.30 billion, down from the first-quarter level of $93.73 billion. The funded backlog at the end of the reported quarter was $74.41 billion.
Shares of GD have gained about 1.8% over the past two weeks (as of Aug 1).
Lockheed Martin
Lockheed Martin (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter, driven by segmental revenue sales growth.
Lockheed has partially raised its financial guidance for 2024, expecting revenues in the range of $70.50-$71.50 billion. The company also continues to project EPS in the range of $26.10-$26.60. Shares of LMT have gained about 14% over the past two weeks (as of Aug 1).
ETFs in Focus
For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report) has gained 14.23% over the past year and 8.8% over the past month.
Invesco Aerospace & Defense ETF (PPA - Free Report) has gained 22.23% over the past year and 7.2% over the past month.
SPDR S&P Aerospace & Defense ETF (XAR - Free Report) has gained 15.85% over the past year and 8.4% over the past month.
Global X Defense Tech ETF (SHLD - Free Report) has gained 0.12% over the past three months and 7.60% over the past month.