EADSY - Aerospace defense stocks see EPS revisions at Jefferies
2023-04-10 16:27:06 ET
Jefferies on Monday revised its earnings estimates for several companies in the aerospace and defense industries as they prepare to report quaterly results in the next few weeks.
The revisions were related a variety of issues ranging from supply-chain difficulties to the timing of defense contracts and the demand for private jets.
The following excerpts are from the report by Jefferies:
General Dynamics ( NYSE: GD ): “Given less favorable mix of aircraft, our Q1 2023E EPS is lowered from $2.76 to $2.47,” according to Jefferies. It also lowered estimates for marine revenue at General Dynamics to $2.57 billion from $2.69 billion to reflect worker shortages in making Virginia-class submarines.
Howmet ( NYSE: HWM ): Jefferies lowered its estimates of sales of wheels for certain models of heavy-duty trucks, which Howmet ( HWM ) also supplies.
Hexcel ( NYSE: HXL ): Jefferies adjusted estimates to reflect lower expectations for aircraft production by Airbus ( OTCPK:EADSF ) ( OTCPK:EADSY ), the European maker of jet liners.
Raytheon Technologies ( NYSE: RTX ): “We lower our 2023 EPS to $4.85 from $4.95 to reflect $135 million of incremental interest tied to a February refinancing that added $2.4BB of incremental debt,” according to Jefferies. It also lowered revenue estimates for Raytheon’s Collins unit to $22.6 billion from $22.7 billion with changes to Airbus’s ( OTCPK:EADSF ) ( OTCPK:EADSY ) production rates.
TransDigm Group: “We lowered 2023 EPS by 2% to $21.35 after adjusting the timing of the acquisition of Calspan to begin in FY 2024 from FQ3 2023 previously (removing $100 million of revenue from FY 2023),” according to Jefferies. “A partial offset is higher interest income given the outflow of cash for the acquisition is also deferred.”
Triumph Group ( NYSE: TGI ): Jefferies adjusted its EPS estimates to “reflect higher interest expense from the timing of warrants. We had previously included $235 million of warrant proceeds effective March 8, 2023.”
| Jefferies EPS estimate revisions for select aerospace and defense stocks, April 10 |
| New |
| Old |
| CACI International ( CACI ) |
| 2023 |
| $18.00 |
| $18.25 |
| 2024 |
| $21.05 |
| $21.15 |
| General Dynamics ( GD ) |
| 2023 |
| $12.80 |
| $12.75 |
| Howmet ( HWM ) |
| 2023 |
| $1.60 |
| $1.63 |
| 2024 |
| $2.00 |
| $2.05 |
| Hexcel ( HXL ) |
| 2024 |
| $2.40 |
| $2.45 |
| L3Harris Technologies ( LHX ) |
| 2023 |
| $12.10 |
| $12.20 |
| Lockheed Martin ( LMT ) |
| 2022 |
| $27.23 |
| $21.60 |
| 2023 |
| $26.75 |
| $26.85 |
| 2024 |
| $27.60 |
| $27.30 |
| Raytheon Technologies ( RTX ) |
| 2023 |
| $4.85 |
| $4.95 |
| 2024 |
| $5.55 |
| $5.65 |
| Spirit AeroSystems ( SPR ) |
| 2023 |
| $0.20 |
| $0.30 |
| 2024 |
| $1.45 |
| $1.60 |
| TransDigm Group ( NYSE: TDG ) |
| 2023 |
| $21.35 |
| $21.75 |
| 2024 |
| $26.00 |
| $26.35 |
| Triumph Group ( TGI ) |
| 2023 |
| $0.58 |
| $0.55 |
| 2024 |
| $0.25 |
| $0.40 |
For further details see:
Aerospace, defense stocks see EPS revisions at Jefferies