What's In Store For Aerojet Rocketdyne (AJRD) Q4 Earnings?
Zacks Investment Research | Feb 11, 2020 08:16PM ET
Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) is expected to release fourth-quarter 2019 results soon.
In the last reported quarter, the company came up with a negative earnings surprise of 23.91%. Over the trailing four quarters, Aerojet Rocketdyne surpassed the Zacks Consensus Estimate on two occasions for as many misses, the average being 9.48%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
For the past couple of quarters, Aerojet Rocketdyne has been witnessing a steady rise in revenues, primarily owing to improved performance in its Aerospace and Defense segment. Heightening global unrest has been driving this growth, thereby fueling demand for defense products and equipment. The company’s defense business is also developing additive manufacturing (AM) applications for hypersonic propulsion systems, which, in turn, has been spurring demand on a global scale.
Furthermore, the expansionary defense budgetary amendments undertaken by the current U.S. administration in the past couple of years have been bolstering revenues of defense players like Aerojet Rocketdyne. The company benefits largely from this, as some of its major customers, Lockheed Martin (NYSE:LMT) and Raytheon Company (NYSE:RTN) , have been allotted significant funds.
We anticipate the company’s soon-to-be-reported results to duly reflect these factors. In line with this, the Zacks Consensus Estimate for fourth-quarter revenues stands at $504 million, indicating a rise of 15.2% from the year-ago quarter’s reported figure.
The company has been focusing on slashing costs under its competitive improvement program (CIP). Anticipating the company to have followed similar cost-reduction moves during the fourth quarter as well, we believe its quarterly results will reflect lower expenses. This, along with the before-mentioned revenue growth forecast, suggests stellar bottom-line growth during the period in discussion.
In line with this, the Zacks Consensus Estimate for Aerojet Rocketdyne’s quarterly earnings is pegged at 45 cents, calling for a surge of 36.4% from the prior-year quarter’s reported figure.
Aerojet Rocketdyne Holdings, Inc. Price and EPS Surprise
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