Aerospace and defense company BWX (NYSE: BWXT) will be reporting earnings this Monday afternoon. Here’s what to expect.
BWX beat analysts’ revenue expectations last quarter, reporting revenues of $860.2 million, up 26.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is BWX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting BWX’s revenue to grow 18.3% year on year, improving from the 12.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. BWX has a history of exceeding Wall Street’s expectations.
Looking at BWX’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Huntington Ingalls delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 8.2%, and RTX reported revenues up 14.5%, topping estimates by 7.8%. Huntington Ingalls traded up 16.4% following the results while RTX was also up 9.2%.
Read our full analysis of Huntington Ingalls’s results here and RTX’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. BWX is down 14.2% during the same time and is heading into earnings with an average analyst price target of $238.16 (compared to the current share price of $168.79).
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