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LLL, RTN Q2 Earnings on Jul 26: Here are the Key Predictions
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The second-quarter earnings season is well under way with 87 S&P 500 members having reported their quarterly numbers as of Jul 20. So far, the earnings trend appears impressive with a number of positive surprises and solid momentum on the revenue front.
While quarterly earnings of the 87 S&P members were up 20.9%, revenues increased 10.3% from second-quarter 2017 levels. The beat ratio for the bottom line was 86.2% while that for top line was 77% as of Jul 20.
Coming to the Zacks Aerospace sector, the defense primes like Textron and Lockheed Martin (LMT - Free Report) have already reported their quarterly results so far, while Boeing (BA - Free Report) , General Dynamics and Northrop Grumman are set to release their second-quarter financial numbers today. Considering the inherent stability of this industry, projections for the Aerospace sector (one of the 16 Zacks sector), hint at an impressive quarter compared with its second-quarter performance last year.
Apparently, the sector's earnings are likely to improve 19.2% on 5.5% higher revenues this earnings season. For more details on quarterly releases, you can go through the latest Earnings Preview.
Defense stocks, which have been on a growth trajectory for past couple of quarters, courtesy of President Trump’s favored stance toward increased spending on the nation’s defense, saw a bumpy second quarter. While suspension of the Iran deal fueling chances of civil war in Syria bolstered defense stocks, the denuclearization agreement signed by North Korea hinting at a peace regime across the Korean peninsula checked the rally. Nevertheless, a steady flow of contracts from the Pentagon continues to provide impetus to the stocks. Defense contractors also received a string of key contracts from foreign allies of the United States, hinting at growing international market for weaponries.
With more than 750 companies (175 S&P 500 members) slated to report second-quarter results this week, let's find out where the following defense stocks stand before their earnings release on Jul 26.
Raytheon Company delivered a positive earnings surprise of 4.76% in the last reported quarter. The company outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 5.68%.
Segment-wise, the Missile Systems business unit — representing almost 30% of the company's total business sales — continues to be one of the major growth drivers. Keeping this trend alive, Raytheon is poised to benefit from this unit in the to-be-reported quarter as well. Raytheon's other segments also secured notable contracts from the Pentagon.The Zacks Consensus estimate for second-quarter total sales is pegged at $6.50 billion, representing an annual improvement of 3.5%.
Notably, lower taxes have been benefiting the company’s bottom line, courtesy of the latest Tax reform. This upside might be reflected in the soon-to-be reported quarterly results as well.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. Impressively, Raytheon constitutes that right combination. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an Earnings ESP of +0.38% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Please note that 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 (read more:Will Steady Contract Wins Drive Raytheon Q2 Earnings?).
L3 Technologies, Inc. pulled off a positive earnings surprise of 17.59% in first-quarter 2018. The company outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 7.42%.
Generally, contract wins from the Pentagon as well as foreign allies of the United States lead to revenue growth for defense contractors like L3 Technologies. Unfortunately, the company was successful in securing only one notable contract worth $391 million throughout the second quarter of 2018. Such a dearth in orders might weigh on L3 Technologies’ revenues in the to-be-reported quarter.
On the bottom line front, the company expects its operating margin to expand in the second quarter by approximately 180 basis points, which in turn should benefit its quarterly earnings. In line with this, the Zacks Consensus estimate for second-quarter earnings stands at $2.30 per share, mirroring a 4.1% increase on a year-over-year basis.
L3 Technologies has an Earnings ESP of -1.07% and a Zacks Rank #2. Therefore, our model does not show that the company is likely to beat estimates this quarter (read more: L3 Technologies to Report Q2 Earnings: What's in Store?).
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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LLL, RTN Q2 Earnings on Jul 26: Here are the Key Predictions
The second-quarter earnings season is well under way with 87 S&P 500 members having reported their quarterly numbers as of Jul 20. So far, the earnings trend appears impressive with a number of positive surprises and solid momentum on the revenue front.
While quarterly earnings of the 87 S&P members were up 20.9%, revenues increased 10.3% from second-quarter 2017 levels. The beat ratio for the bottom line was 86.2% while that for top line was 77% as of Jul 20.
Coming to the Zacks Aerospace sector, the defense primes like Textron and Lockheed Martin (LMT - Free Report) have already reported their quarterly results so far, while Boeing (BA - Free Report) , General Dynamics and Northrop Grumman are set to release their second-quarter financial numbers today. Considering the inherent stability of this industry, projections for the Aerospace sector (one of the 16 Zacks sector), hint at an impressive quarter compared with its second-quarter performance last year.
Apparently, the sector's earnings are likely to improve 19.2% on 5.5% higher revenues this earnings season. For more details on quarterly releases, you can go through the latest Earnings Preview.
Defense stocks, which have been on a growth trajectory for past couple of quarters, courtesy of President Trump’s favored stance toward increased spending on the nation’s defense, saw a bumpy second quarter. While suspension of the Iran deal fueling chances of civil war in Syria bolstered defense stocks, the denuclearization agreement signed by North Korea hinting at a peace regime across the Korean peninsula checked the rally. Nevertheless, a steady flow of contracts from the Pentagon continues to provide impetus to the stocks. Defense contractors also received a string of key contracts from foreign allies of the United States, hinting at growing international market for weaponries.
With more than 750 companies (175 S&P 500 members) slated to report second-quarter results this week, let's find out where the following defense stocks stand before their earnings release on Jul 26.
Raytheon Company delivered a positive earnings surprise of 4.76% in the last reported quarter. The company outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 5.68%.
Segment-wise, the Missile Systems business unit — representing almost 30% of the company's total business sales — continues to be one of the major growth drivers. Keeping this trend alive, Raytheon is poised to benefit from this unit in the to-be-reported quarter as well. Raytheon's other segments also secured notable contracts from the Pentagon.The Zacks Consensus estimate for second-quarter total sales is pegged at $6.50 billion, representing an annual improvement of 3.5%.
Notably, lower taxes have been benefiting the company’s bottom line, courtesy of the latest Tax reform. This upside might be reflected in the soon-to-be reported quarterly results as well.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. Impressively, Raytheon constitutes that right combination. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an Earnings ESP of +0.38% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Please note that 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 (read more:Will Steady Contract Wins Drive Raytheon Q2 Earnings?).
Raytheon Company Price and EPS Surprise
Raytheon Company Price and EPS Surprise | Raytheon Company Quote
L3 Technologies, Inc. pulled off a positive earnings surprise of 17.59% in first-quarter 2018. The company outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 7.42%.
Generally, contract wins from the Pentagon as well as foreign allies of the United States lead to revenue growth for defense contractors like L3 Technologies. Unfortunately, the company was successful in securing only one notable contract worth $391 million throughout the second quarter of 2018. Such a dearth in orders might weigh on L3 Technologies’ revenues in the to-be-reported quarter.
On the bottom line front, the company expects its operating margin to expand in the second quarter by approximately 180 basis points, which in turn should benefit its quarterly earnings. In line with this, the Zacks Consensus estimate for second-quarter earnings stands at $2.30 per share, mirroring a 4.1% increase on a year-over-year basis.
L3 Technologies has an Earnings ESP of -1.07% and a Zacks Rank #2. Therefore, our model does not show that the company is likely to beat estimates this quarter (read more: L3 Technologies to Report Q2 Earnings: What's in Store?).
L3 Technologies Inc. Price and EPS Surprise
L3 Technologies Inc. Price and EPS Surprise | L3 Technologies Inc. Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>