Aerospace and defense company BWX (NYSE: BWXT) will be reporting earnings this Monday after market close. Here’s what to expect.
BWX met analysts’ revenue expectations last quarter, reporting revenues of $901.6 million, up 18% year on year. It was a strong quarter for the company, with full-year EBITDA guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA 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 12.3% year on year, slowing from the 28.9% 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 will stay the course heading into earnings. BWX rarely misses Wall Street’s revenue estimates.
Looking at BWX’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Huntington Ingalls delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 5.3%, and RTX reported revenues up 11.1%, topping estimates by 3.3%. Huntington Ingalls traded up 13.5% following the results while RTX’s stock price was unchanged.
Read our full analysis of Huntington Ingalls’s results here and RTX’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader 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 3.2% on average over the last month. BWX is down 1.4% during the same time and is heading into earnings with an average analyst price target of $209.44 (compared to the current share price of $132.93).
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