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Aerojet Rocketdyne (AJRD) Q1 Earnings Lag Estimates, Fall Y/Y

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Shares of Aerojet Rocketdyne Holdings, Inc. AJRD depreciated 1.8% to reach $47.60 on Apr 27, reflecting investor skepticism following the company's first-quarter results.

The company reported first-quarter 2021 earnings per share (EPS) of 22 cents, which missed the Zacks Consensus Estimate of 46 cents by a wide margin. The bottom line also plunged 40.5% year over year from the 37 cents reported in the year-ago quarter.

Operational Performance

The company’s quarterly revenues of $496.1 million improved 4.2% from the year-ago quarter’s $476.1 million. The top line, however, lagged the Zacks Consensus Estimate of $510 million. This year-over-year increase in net sales was primarily led by a rise in the Aerospace and Defense segment sales.

Aerojet Rocketdyne’s backlog at the end of first-quarter 2021 totaled $5.3 billion, lower than the $6.7 billion witnessed at the end of 2020. Of this, funded backlog amounted to $3 billion.

Total operating expenses flared up 7.5% to $450.3 million in the first quarter. Meanwhile, operating income of $45.8 million declined 19.8% from the prior-year period’s $57.1 million.

Segmental Performance

Aerospace & Defense: Revenues at this segment improved 4.4% year over year to $495.5 million from the previous year’s $474.4 million.

Real Estate: The segment generated revenues of $0.6 million compared with the year-ago quarter’s reported revenues of $1.7 million.

Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise

Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise
Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise

Aerojet Rocketdyne Holdings, Inc. price-consensus-eps-surprise-chart | Aerojet Rocketdyne Holdings, Inc. Quote

Financial Update

Aerojet Rocketdyne exited the first quarter with cash and cash equivalents of $503.7 million, down from $1,149.5 million as of Dec 31, 2020.

Long-term debt amounted to $317.4 million, down from $324.4 million as of Dec 31, 2020.

Operating cash outflow from continuing operations summed $69.4 million as of Mar 31, 2021, compared with the cash outflow of $17.1 million in the year-ago period.

Free cash outflow at the end of the reported quarter was $73.2 million compared with the prior year’s $20.1million.

Zacks Rank

Aerojet Rocketdyne currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin Corp. LMT delivered first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32.

Hexcel Corporation HXL reported first-quarter 2021 loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents.

Raytheon Technologies Corporation’s RTX first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents.

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Aerojet Rocketdyne Holdings, Inc. (AJRD) : Free Stock Analysis Report

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