Aerospace and Defense Stocks Q3 In Review: Byrna (NASDAQ:BYRN) Vs Peers

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Huntington Ingalls Industries

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace and defense industry, including Byrna and its peers.

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 29 aerospace and defense stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.7% below.

While some aerospace and defense stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.

Byrna

Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna is a provider of non-lethal weapons.

Byrna reported revenues of $28.18 million, up 35.1% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with a beat of analysts’ EPS eand EBITDA estimates.

Unsurprisingly, the stock is down 23.7% since reporting and currently trades at $17.40.

Read why we think that Byrna is one of the best aerospace and defense stocks, our full report is free.

Best Q3: RTX

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

RTX reported revenues of $22.48 billion, up 11.9% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $172.38.

Is now the time to buy RTX? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Redwire

Based in Jacksonville, Florida, Redwire is a provider of systems and components used in space infrastructure.

Redwire reported revenues of $103.4 million, up 50.7% year on year, falling short of analysts’ expectations by 21.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

Redwire delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 26.5% since the results and currently trades at $5.43.

Read our full analysis of Redwire’s results here.

Cadre

Originally known as Safariland, Cadre specializes in manufacturing and distributing safety and survivability equipment for first responders.

Cadre reported revenues of $155.9 million, up 42.5% year on year. This print lagged analysts' expectations by 2.7%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ Products revenue estimates.

The stock is down 2.4% since reporting and currently trades at $41.50.

Read our full, actionable report on Cadre here, it’s free for active Edge members.

Huntington Ingalls

Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls develops marine vessels and their mission systems and maintenance services.

Huntington Ingalls reported revenues of $3.19 billion, up 16.1% year on year. This number surpassed analysts’ expectations by 8.1%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 5.6% since reporting and currently trades at $315.23.

Read our full, actionable report on Huntington Ingalls here, it’s free for active Edge members.

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Defense Contractors Stocks Q3 In Review: Leidos (NYSE:LDOS) Vs Peers

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Huntington Ingalls Industries

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Leidos and the rest of the defense contractors stocks fared in Q3.

Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds.

The 13 defense contractors stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was in line.

While some defense contractors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results.

Leidos

Formed through the split of IT services company SAIC, Leidos offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.

Leidos reported revenues of $4.47 billion, up 6.7% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ backlog estimates and an impressive beat of analysts’ EBITDA estimates.

"Leidos continues to deliver exceptional results through the strength of our portfolio of mission-critical work as well as the innovation, agility, and discipline of our talented workforce," said Leidos Chief Executive Officer Tom Bell.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $192.02.

Is now the time to buy Leidos? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: RTX

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

RTX reported revenues of $22.48 billion, up 11.9% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $172.38.

Is now the time to buy RTX? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Parsons

Delivering aerospace technology during the Cold War-era, Parsons offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.

Parsons reported revenues of $1.62 billion, down 10.4% year on year, falling short of analysts’ expectations by 2.3%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates and a miss of analysts’ backlog estimates.

Parsons delivered the slowest revenue growth in the group. Interestingly, the stock is up 5.3% since the results and currently trades at $83.74.

Read our full analysis of Parsons’s results here.

KBR

Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.

KBR reported revenues of $1.93 billion, flat year on year. This number came in 1.5% below analysts' expectations. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ backlog estimates but full-year revenue guidance missing analysts’ expectations.

The stock is down 5% since reporting and currently trades at $40.75.