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Defense Stocks to Post Q1 Earnings on Apr 26: BA, GD, NOC
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The Q1 earnings season in the defense sector started with the quarterly release of Textron Inc. (TXT - Free Report) on Apr 19. This multi-industry conglomerate’s earnings came in line with estimates. On the other hand, Rockwell Collins, Inc. reported better-than-expected numbers on Apr 21. Today, sector behemoth Lockheed Martin Corp. (LMT - Free Report) is scheduled to post its first-quarter 2017 results. In fact, the majority of the defense giants are expected to release their financial numbers this week.
As of Apr 21, 19% of the market cap of the S&P 500 index has reported quarterly results, revealing a 14.3% increase in earnings on 4.6% higher revenues. Overall, earnings are anticipated to record a 9.1% increase on 6% higher revenues, with five of the 16 Zacks sectors anticipating wider declines. The picture should become clearer by the end of this week, as a number of the index members are scheduled to report earnings.
Only 20% of the Aerospace and Defense sector (as of Apr 21) released their quarterly results, with 50% beating both EPS and revenue estimates. However, total Q1 earnings from the Aerospace and Defense sector are expected to decline 0.3% year over year on 2.1% lower revenues. For more details on quarterly releases, you can go through our Earnings Preview report.
Let’s take a look at three defense companies—The Boeing Company (BA - Free Report) , General Dynamics Corp. (GD - Free Report) and Northrop Grumman Corporation (NOC - Free Report) —all of which are scheduled to release quarterly results before the opening bell on Apr 26.
Boeing reported a positive earnings surprise of 5.56% in the last quarter. Notably, the company outperformed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 21.42%.
Our proven model shows that Boeing is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The company has the right combination of two key ingredients.
Boeing has an Earnings ESP of +0.52%. That is because while the Most Accurate estimate is pegged at $1.92, the Zacks Consensus Estimate is lower at $1.91. The company currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
General Dynamics reported a positive earnings surprise of 3.15% in the prior quarter. It is worth noting that General Dynamics outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 5.81%.
The Earnings ESP for General Dynamics is +0.86% because the Most Accurate estimate is $2.34, while the Zacks Consensus Estimate is pegged lower at $2.32. The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman reported a positive earnings surprise of 6.83% in the preceding quarter. It is worth noting that Northrop Grumman outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 7.61%.
Northrop Grumman has an Earnings ESP of +1.03%. That is because while the Most Accurate estimate is pegged at $2.93, the Zacks Consensus Estimate is lower at $2.90. The company has a Zacks Rank #2. Our proven model shows that Northrop Grumman is likely to beat earnings because it has the right combination of two key ingredients. (Read more: Is Northrop Grumman Poised for a Q1 Earnings Beat?)
Northrop Grumman Corporation Price and EPS Surprise
More Stock News: 8 Companies Verge on Aplle-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Image: Bigstock
Defense Stocks to Post Q1 Earnings on Apr 26: BA, GD, NOC
The Q1 earnings season in the defense sector started with the quarterly release of Textron Inc. (TXT - Free Report) on Apr 19. This multi-industry conglomerate’s earnings came in line with estimates. On the other hand, Rockwell Collins, Inc. reported better-than-expected numbers on Apr 21. Today, sector behemoth Lockheed Martin Corp. (LMT - Free Report) is scheduled to post its first-quarter 2017 results. In fact, the majority of the defense giants are expected to release their financial numbers this week.
As of Apr 21, 19% of the market cap of the S&P 500 index has reported quarterly results, revealing a 14.3% increase in earnings on 4.6% higher revenues. Overall, earnings are anticipated to record a 9.1% increase on 6% higher revenues, with five of the 16 Zacks sectors anticipating wider declines. The picture should become clearer by the end of this week, as a number of the index members are scheduled to report earnings.
Only 20% of the Aerospace and Defense sector (as of Apr 21) released their quarterly results, with 50% beating both EPS and revenue estimates. However, total Q1 earnings from the Aerospace and Defense sector are expected to decline 0.3% year over year on 2.1% lower revenues. For more details on quarterly releases, you can go through our Earnings Preview report.
Let’s take a look at three defense companies—The Boeing Company (BA - Free Report) , General Dynamics Corp. (GD - Free Report) and Northrop Grumman Corporation (NOC - Free Report) —all of which are scheduled to release quarterly results before the opening bell on Apr 26.
Boeing reported a positive earnings surprise of 5.56% in the last quarter. Notably, the company outperformed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 21.42%.
Our proven model shows that Boeing is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The company has the right combination of two key ingredients.
Boeing has an Earnings ESP of +0.52%. That is because while the Most Accurate estimate is pegged at $1.92, the Zacks Consensus Estimate is lower at $1.91. The company currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Boeing Company (The) Price and EPS Surprise
Boeing Company (The) Price and EPS Surprise | Boeing Company (The) Quote
General Dynamics reported a positive earnings surprise of 3.15% in the prior quarter. It is worth noting that General Dynamics outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 5.81%.
The Earnings ESP for General Dynamics is +0.86% because the Most Accurate estimate is $2.34, while the Zacks Consensus Estimate is pegged lower at $2.32. The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Therefore General Dynamics is likely to beat earnings because it has the right combination of two key ingredients. (Read more: General Dynamics Q1 Earnings: A Beat in the Cards?)
General Dynamics Corporation Price and EPS Surprise
General Dynamics Corporation Price and EPS Surprise | General Dynamics Corporation Quote
Northrop Grumman reported a positive earnings surprise of 6.83% in the preceding quarter. It is worth noting that Northrop Grumman outperformed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 7.61%.
Northrop Grumman has an Earnings ESP of +1.03%. That is because while the Most Accurate estimate is pegged at $2.93, the Zacks Consensus Estimate is lower at $2.90. The company has a Zacks Rank #2. Our proven model shows that Northrop Grumman is likely to beat earnings because it has the right combination of two key ingredients. (Read more: Is Northrop Grumman Poised for a Q1 Earnings Beat?)
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation Price and EPS Surprise | Northrop Grumman Corporation Quote
More Stock News: 8 Companies Verge on Aplle-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>