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Aerojet Rocketdyne (AJRD) Q2 Earnings Surpass Estimates

Zacks Equity Research

Aerojet Rocketdyne Holdings, Inc. AJRD reported second-quarter 2020 adjusted earnings of 46 cents per share, which surpassed the Zacks Consensus Estimate of 43 cents by 7%. However, the bottom line declined 8% year over year.

Barring one-time adjustments, the company reported GAAP earnings of 47 cents per share, reflecting a decline of 1.9% from 54 cents recorded in the prior-year quarter.

Operational Performance

Aerojet Rocketdyne’s second-quarter revenues of $512.4 million came in 5.6% higher than the year-ago quarter’s $485 million. The top line also exceeded the Zacks Consensus Estimate of $501 million by 2.3%.The increase in net sales was primarily driven by the Guided Multiple Launch Rocket System (GMLRS) and the Medium Range Ballistic Missile (MRBM) programs.

Total backlog at the end of second-quarter 2020 was $6.8 billion compared with $5.4 billion as of Dec 31, 2019. Of this, funded backlog amounted to $3.2 billion compared with $2.1 billion at 2019-end.

Total operating expenses increased 7.1% year over year to $443.4 million in the second quarter. Meanwhile, operating income of $69 million fell3% from $71.1 million a year ago.

Segmental Performance

Aerospace & Defense: Revenues at this segment improved 6% year over year to$511.9 million.

Real Estate: The segment generated revenues of $0.5 million compared with the year-ago quarter’s figure of $1.9 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 second quarter with cash and cash equivalents of $1,003.9 million, up from $932.6 million as of Dec 31, 2019.

Long-term debt amounted to $338.4 million as of Jun 30, 2020, down from $352.3 million as of Dec 31, 2019.

Operating cash inflow from continuing operations summed $127.6 million as of Jun 30, 2020, compared with $31.2 million in the year-ago period.

Free cash flow at the end of the first six months of 2020 was $111.4 million compared with $24.3 million a year ago.

Zacks Rank

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

Recent Defense Releases

Teledyne Technologies TDY, a Zacks Rank #2 (Buy) stock, reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hexcel Corporation HXL, a Zacks Rank #2 stock, reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.

Lockheed Martin LMT, a Zacks Rank #3 (Hold) stock, reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.

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