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Aerojet Rocketdyne (AJRD) Q3 Earnings: What's in the Cards?

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Aerojet Rocketdyne Holdings, Inc. is set to release third-quarter 2018 results on Nov 1, before the opening bell. It is a supplier of the world’s most technologically advanced propulsion systems for both commercial and defense aircraft.

In the prior reported quarter, the company delivered a positive earnings surprise of 73.08%. Moreover, in the trailing four quarters, Aerojet Rocketdyne surpassed the Zacks Consensus Estimate with an average beat of 9.27%.

Let’s see how things are shaping up prior to this announcement.

Factors Under Consideration

In the second quarter of 2018, Aerojet Rocketdyne reported solid revenue growth, driven by increased deliveries on the Standard Missile and PAC-3 programs. However, during the third quarter, the company witnessed dearth of significant deliveries and order growth. This, in turn, may weigh on the company’s top-line performance.

In line with this, the Zacks Consensus Estimate for third quarter-revenues stands at $478 million, reflecting a year-over-year decline of 1.3%. However, such revenue numbers may not get translated into lower bottom line figures, courtesy of the significant operational improvements management expects to gain.  Lower tax rates, owing to the latest U.S. tax reforms, should also boost earnings for the company.

Keeping this under consideration, the Zacks Consensus Estimate for Aerojet Rocketdyne's third-quarter earnings of 30 cents reflects an annual surge of 76.5%.

Earnings Whispers

Our proven model does not conclusively show that Aerojet Rocketdyne is likely to beat on 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. This is not the case here, as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Aerojet Rocketdyne currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aerojet Rocketdyne Holdings, Inc. Price and EPS Surprise

 

Aerojet Rocketdyne Holdings, Inc. Price and EPS Surprise | Aerojet Rocketdyne Holdings, Inc. Quote

Recent Defense Releases

Textron Inc. (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%.

Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2018 earnings of $5.14 per share, beating the Zacks Consensus Estimate of $4.32 by 19%. The bottom line also improved 54.8% from the year-ago quarter’s $3.32.

Upcoming Defense Releases

Transdigm Group (TDG - Free Report) is expected to report third-quarter 2018 results on Nov 8. The company has an Earnings ESP of +0.05% and a Zacks Rank of 2.

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