Aerojet Rocketdyne Holdings (AJRD) came out with quarterly earnings of $ 0.44 per share, exceeding Sachs ’consensus estimate of $ 0.42 per share. That’s compared to earnings of $ 0.22 per share a year ago. These figures have been adjusted for unique articles.
This quarterly report represents a surprise profit of 4.76%. A quarter ago, it was expected that this aerospace and defense company would post a profit of $ 0.50 per share, when in fact it made a profit of $ 0.43, which caused a surprise of -14%.
Over the past four quarters, the company has tripled EPS’s consensus estimates.
The sustainability of immediate stock price movements, based on recently released figures and expectations of future earnings, will largely depend on management comments to earnings call.
Shares of Aerojet Rocketdyne have lost about 14.4% since the beginning of the year against a decline in the S&P 500 by -12.8%.
What awaits Aerojet Rocketdyne?
Despite the fact that this year Aerojet Rocketdyne did not have time to work in the market, investors are faced with the question: what will happen to the stock?
There are no simple answers to this key question, but one reliable measure that can help investors solve this problem is the company’s profit forecast. This not only includes current consensus expectations of earnings for the next quarter (s), but also how those expectations have changed recently.
Empirical studies show a strong correlation between upcoming stock movements and trends in earnings revisions. Investors can track such reviews on their own or rely on a tried and tested rating tool such as Zacks Rank, which has an impressive experience using the opportunity to view earnings estimates.
Ahead of that profit release, the trend of revision estimates for Aerojet Rocketdyne: ambiguous. While the magnitude and direction of valuation revisions may change following the company’s just-published earnings report, the current status is converted to a Zacks rating of № 3 (Content) for stocks. Thus, in the near future it is expected that the shares will operate in line with the market. You can see The full list of today’s shares of Zacks # 1 rank (strong buy) is here.
It will be interesting to see how estimates change for the coming quarters and the current fiscal year in the coming days. EPS’s current consensus estimate is $ 0.47 with revenue of $ 568.53 million for the next quarter and $ 1.94 with revenue of $ 2.29 billion for the current fiscal year.
Investors need to keep in mind that the industry’s outlook can also have a significant impact on stock performance. In terms of the Zacks industry, aerospace engineering is currently in the last 36% of the 250 Zacks industries. Our study shows that the top 50% of industries that rank Zacks outperform the bottom 50% by more than 2: 1.
Another stock of the same industry, TransDigm Group (TDG), has not yet reported results for the quarter ended March 2022. The results are expected to be released on May 10.
The aircraft component maker is expected to post quarterly earnings of $ 3.71 per share in its future report, up + 43.8% from the same period last year. The EPS consensus estimate for the quarter has been revised by 1.1% over the last 30 days to the current level.
TransDigm Group is expected to generate $ 1.31 billion in revenue, up 9.6% from the same quarter last year.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
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