Aerospace and defense company Leonardo DRS (NASDAQ: DRS) will be announcing earnings results this Tuesday before market hours. Here’s what you need to know.
Leonardo DRS beat analysts’ revenue expectations last quarter, reporting revenues of $960 million, up 18.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.
Is Leonardo DRS 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 Leonardo DRS’s revenue to grow 1% year on year, slowing from the 5.9% 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 to stay the course heading into earnings. Leonardo DRS has a history of exceeding Wall Street’s expectations.
Looking at Leonardo DRS’s peers in the defense contractors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 4.4%, beating analysts’ expectations by 10.4%, and Leidos reported a revenue decline of 3.6%, falling short of estimates by 2.5%. Mercury Systems traded down 22.3% following the results while Leidos was also down 2.7%.
Read our full analysis of Mercury Systems’s results here and Leidos’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 7.1% on average over the last month. Leonardo DRS’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $48.10 (compared to the current share price of $40.37).
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