Chicago, IL – May 4, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Raytheon Technologies RTX, The Boeing Company BA, General Dynamics GD, Northrop Grumman NOC and Textron Inc. TXT.
Here are highlights from Tuesday’s Analyst Blog:
Defense Stock Roundup: Q1 Earning Season Edition
In the past five trading sessions, some key defense players reported results, displaying a mixed quarterly performance. So, the overall impact of quarterly results on the bourses was not very impressive. Consequently, the S&P 500 Aerospace & Defense (Industry) index dropped 5.3%, while the Dow Jones U.S. Aerospace & Defense index went down 5.2% in the trailing five trading sessions.
In the past week, Raytheon Technologies, The Boeing Company, General Dynamics, Northrop Grumman and Textron Inc. reported Q1 results.
Recap of Past Week's Important Stories
1. Raytheon Technologies' first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate by 13.9% and improved 27.8% year over year. Its first-quarter sales of $15,716 million missed the Zacks Consensus Estimate by 0.5%. The sales figure, however, rose 3% year over year.
Net cash inflow from operating activities for the company amounted to $476 million during the first quarter compared with $723 million in first-quarter 2021.
The company still projects adjusted EPS in the range of $4.60-$4.80 (read more: Raytheon Technologies Q1 Earnings Top, Sales View Cut).
2. Boeing incurred an adjusted loss of $2.75 per share for first-quarter 2022, which came in much wider than the Zacks Consensus Estimate. Also, the bottom line deteriorated from the year-ago quarter's reported figure. Its revenues amounted to $13.99 billion, which missed the Zacks Consensus Estimate by 12.6% and declined 8% year over year.
Its backlog at the end of first-quarter 2022 decreased to $370.84 billion from $377.50 billion at the end of 2021.
Free cash outflow totaled $3.57 billion at the end of first-quarter 2022 compared with $3.68 billion at the end of first-quarter 2021 (read more: Boeing Q1 Earnings Miss Estimates, Revenues Decline Y/Y).
3. General Dynamics reported first-quarter 2022 EPS of $2.61, which beat the Zacks Consensus Estimate by 4.8% and rose 5.2% year over year. Its first-quarter revenues of $9,392 million surpassed the Zacks Consensus Estimate by 4.6%. Revenues remained almost flat with the year-ago quarter.
General Dynamics recorded a total backlog of $87.23 billion, down 0.4% from 2021-end's backlog.
In the first quarter of 2022, GD generated cash from operating activities of $1,968 million, escalating sharply from only $3 million generated in the year-ago period (read more: General Dynamics Q1 Earnings Top, Revenues Flat Y/Y).
4. Northrop Grumman reported first-quarter 2022 earnings of $6.10 per share, which surpassed the Zacks Consensus Estimate by 2.5% but decreased 54.6% year over year. Its total sales of $8.80 billion missed the Zacks Consensus Estimate by 0.9% and decreased 4% year over year.
Northrop Grumman's total backlog stood at $75.79 billion at the end of first-quarter 2022 compared with $76.05 billion at the 2021 end.
Net cash outflow from operating activities at the end of the first quarter was $488 million compared with $66 million as of Mar 31, 2021 (read more: Northrop Grumman's Q1 Earnings Top, Sales Decline Y/Y).
5. Textron reported first-quarter 2022 earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate by 22.2% and also improved 17.3% year over year. Its revenues came in at $3,001 million, which beat the Zacks Consensus Estimate by 0.9% and increased 4.2% year over year.
As of Apr 2, 2022, the company's cash and cash equivalents totaled $1,978 million compared with $1,922 million as of Jan 1, 2022.
Textron's long-term debt was $3,178 million as of Apr 2, 2022 compared with $3,179 million as of Jan 1, 2022 (read more: Textron Q1 Earnings Beat Estimates, Revenues Rise Y/Y).
Performance
Over the past five trading sessions, the defense biggies put up a dismal show except Textron. Boeing lost the most, with its share price having declined 15.5%.
In the last six months, the industry's performance was impressive, except for Boeing and Textron. Lockheed gained the most with its shares up 32%, followed by Northrop, which gained 24.2%.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
