Aerojet Rocketdyne Shares Slide On Missing Q2 Street Expectations

• Aerojet Rocketdyne Holdings Inc (NYSE: AJRD) reported second-quarter net sales declined 5.1% year-over-year to $528.5 million, missing the consensus of $568.7 million.

• The company attributed lower net sales to a decline in the Standard Missile, RS-25, and RS-68 programs, partially offset by an increase in the Next Generation Interceptor (NGI) program.

• EPS was $0.20, below the consensus of $0.48.

• Operating income fell by 62% Y/Y to $28.2 million, and the margin declined by 800 bps to 5.3%.

• Adjusted EBITDAP was $41.5 million (-52.1% Y/Y), and the margin was 7.9%, down by 770 bps.

• AJRD’s net cash used by operating activities year-to-date totaled $(108.8) million, compared to cash provided of $20.2 million a year ago. Free cash outflow was $(120.3) million.

• As of June 30, 2022, the backlog totaled $6.9 billion (+1.5% Y/Y). The company expects to recognize ~34%, or $2.3 billion, of the remaining performance obligations as sales over the next twelve months.

• Aerojet Rocketdyne held cash and equivalents of $572.4 million as of June 30, 2022.

• Price Action: AJRD shares are trading lower by 8.59% at $39.94 during the market session on Monday.

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