The aerospace and defense stocks that have released their Q2 results have come up with a mixed performance. Some players in this industry, namely Curtiss-Wright CW, Spirit Aerosystems SPR and Triumph Group TGI are set to reveal their quarterly figures tomorrow.
The continuous recovery in global air travel, both domestic and international, over the past few quarters is expected to boost the Q2 results of the aerospace and defense stocks, particularly those engaged in commercial aviation. Boeing witnessed a solid year-over-year surge of 53.2% in its commercial shipments during the second quarter. With Boeing being the largest jet maker in the nation, we expect the Q2 results of the remaining aerospace majors to reflect a similar improvement in delivery trends. Such solid deliveries must have boosted the overall top-line growth of the Aerospace sector, which houses all aerospace and defense stocks.
On the other hand, stocks in this industry that are more focused on combat must have gained as a result of steady government support. Moreover, a steady order flow observed in the past couple of quarters, along with improved deliveries in exact times, buoyed by recovering economic trends are projected to have bolstered Q2 revenues of aerospace and defense stocks.
However, persistent headwinds like supply chain disruption along with some unfavorable project timing as the result of coronavirus might have an adverse impact on the Q2 results of some of the industry majors.
Aerospace sector Q2 earnings are expected to decline 9.2% from the prior-year quarter’s reported figure, while revenues are projected to drop 1.2%.
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Let's take a look at three defense companies that are scheduled to report second-quarter 2022 earnings on Aug 3 and find out how things have shaped up prior to their announcements.
Curtiss-Wright delivered a four-quarter earnings surprise of 4.54%, on average. The Zacks Consensus Estimate for its Q2 sales, pegged at $604.9 million, implies a decline of 2.7% from the prior-year quarter reported figure.
The consensus estimate for Q2 earnings, pegged at $1.68 per share, indicates an improvement of 7.7% from Q2 of 2021. The estimate has inched up 0.6% over the past 30 days.
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Curtiss-Wright currently has an Earnings ESP of +0.90% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CurtissWright Corporation price-eps-surprise | CurtissWright Corporation Quote
Spirit Aerosystems has a four-quarter earnings surprise of 19.47%, on average. The Zacks Consensus Estimate for its Q2 sales, pegged at $1.25 billion, suggests an improvement of 24.3% from the prior-year quarter figure.
The consensus estimate for the Q2 bottom line, pegged at a loss of 23 cents per share, indicates an improvement from a loss of 31 cents that the company had incurred in Q2 of 2021. The estimate has deteriorated from a loss of 21 cents over the past 30 days.
Spirit Aerosystems currently has an Earnings ESP of +5.71% and a Zacks Rank 3.
Spirit Aerosystems Holdings, Inc. price-eps-surprise | Spirit Aerosystems Holdings, Inc. Quote
Triumph Group delivered a four-quarter earnings surprise of 42.00%, on average. The Zacks Consensus Estimate for its Q2 sales, pegged at $300 million, indicates a decline of 19.3% from the prior-year quarter figure.
The consensus estimate for Q2 earnings, pegged at 9 cents per share, implies no change from earnings recorded in Q2 of 2021. The estimate has surged 50% over the past 30 days.
Triumph Group currently has an Earnings ESP of 0.00% and a Zacks Rank 3.
Triumph Group, Inc. price-eps-surprise | Triumph Group, Inc. Quote
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