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Aerojet Rocketdyne (AJRD) Q2 Earnings Miss Estimates, Fall Y/Y

Zacks Equity Research
·4-min read

Shares of Aerojet Rocketdyne Holdings, Inc. AJRD gained 1.4% to reach $41.07 on Aug 3, reflecting investor optimism following the company's second-quarter 2022 results.

The company reported second-quarter earnings per share (EPS) of 20 cents, which missed the Zacks Consensus Estimate of 47 cents by 57.5%. The bottom line also declined 63% year over year from 54 cents reported in the year-ago quarter.

Operational Performance

The company’s quarterly sales of $528.5 million declined 5.1% from the year-ago quarter’s $556.9 million. The top line also missed the Zacks Consensus Estimate by 7.3%. This year-over-year decrease in net sales was on account of a decline in both Aerospace and Defense as well as Real Estate segment sales.

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

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Aerojet Rocketdyne’s backlog at the end of second-quarter 2022 totaled $6.9 billion, higher than $6.4 billion witnessed at the end of the first quarter of 2022. Of this, funded backlog amounted to $3.2 billion.

Total operating costs and expenses increased 3.7% to $500.3 million in the second quarter. Operating income of $28.2 million declined 62% from the prior-year period’s $69 million.

Segmental Performance

Aerospace & Defense: Revenues at this segment declined 5.1% year over year to $527.9 million from the previous year’s $556 million.

Real Estate: The segment generated revenues of $0.6 million compared with the year-ago quarter’s reported revenues of $0.9 million.

Financial Update

Aerojet Rocketdyne exited the second quarter with cash and cash equivalents of $560.3 million, down from $700.4 million as of Dec 31, 2021.

Long-term debt amounted to $276.7 million, down from $294.6 million as of Dec 31, 2021.

Operating cash outflow from continuing operations was $108.8 million as of Jun 30, 2022 against a cash inflow of $20.2 million in the year-ago period.

Free cash outflow at the end of the reported quarter was $120.3 million against the prior year’s free cash inflow of $7.9 million.

Zacks Rank

Aerojet Rocketdyne currently carries a Zacks Rank #5 (Strong Sell).

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

Recent Defense Releases

Hexcel Corporation HXL reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.

The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.

Teledyne Technologies Inc. TDY reported second-quarter 2022 adjusted earnings of $4.43 per share, which surpassed the Zacks Consensus Estimate of $4.38 by 1.1%. However, the bottom line declined 3.9% from the year-ago quarter’s $4.61 per share.

Total sales in the second quarter amounted to $1,355.8 million, which exceeded the Zacks Consensus Estimate of $1,352 million by 0.3%. The top line also improved 21% from $1,121 million reported a year ago.

Lockheed Martin LMT reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.

Lockheed Martin’s top line declined 9.3% from $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.


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