Reflecting On Aerospace and Defense Stocks’ Q2 Earnings: Byrna (NASDAQ:BYRN)
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Byrna (NASDAQ:BYRN) and the best and worst performers in the aerospace and defense industry.
Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.
The 30 aerospace and defense stocks we track reported a solid Q2. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 1.9% below.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. Thankfully, aerospace and defense stocks have been resilient with share prices up 7.4% on average since the latest earnings results.
Byrna (NASDAQ:BYRN)
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Byrna reported revenues of $20.27 million, up 76.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
Byrna scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 7.3% since reporting and currently trades at $11.07.
Best Q2: Leonardo DRS (NASDAQ:DRS)
Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services.
Leonardo DRS reported revenues of $753 million, up 19.9% year on year, outperforming analysts’ expectations by 10.7%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.4% since reporting. It currently trades at $27.50.
Is now the time to buy Leonardo DRS? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: AerSale (NASDAQ:ASLE)
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft.
AerSale reported revenues of $77.1 million, up 11.2% year on year, falling short of analysts’ expectations by 12.7%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
AerSale had the weakest performance against analyst estimates in the group. As expected, the stock is down 5.2% since the results and currently trades at $5.28.
Read our full analysis of AerSale’s results here.
Mercury Systems (NASDAQ:MRCY)
Founded in 1981, Mercury Systems (NASDAQ:MRCY) specializes in providing processing subsystems and components for primarily defense applications.
Mercury Systems reported revenues of $248.6 million, down 1.8% year on year, surpassing analysts’ expectations by 7.8%. More broadly, it was an incredible quarter for the company with an impressive beat of analysts’ organic revenue and earnings estimates.
The stock is up 12.6% since reporting and currently trades at $38.30.
Read our full, actionable report on Mercury Systems here, it’s free.
Textron (NYSE:TXT)
Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.53 billion, up 3% year on year, in line with analysts’ expectations. More broadly, it was a decent quarter for the company with a solid beat of analysts’ EPS estimates.
The stock is down 4.1% since reporting and currently trades at $88.20.
Read our full, actionable report on Textron here, it’s free.
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