Leonardo DRS Stock Rises 17.5% After Strong Q1, Outpacing Defense Peers

Earnings
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Summary · why it matters

Leonardo DRS reported first-quarter revenues of $846 million, up 5.9% year on year and beating analyst estimates by 3.3%, in what the company called an exceptional quarter with beats on EPS and EBITDA. Its stock has risen 17.5% since the report, trading at $47. Among the 13 defense contractors tracked, Mercury Systems posted the biggest beat with revenues of $235.8 million, up 11.5% year on year and 14.2% above estimates, sending its shares up 38.8% to $115.11. Lockheed Martin had the weakest quarter, with flat revenues of $18.02 billion missing estimates by 0.9% and a significant miss on adjusted operating income and EPS, causing its stock to fall 8% to $511.04. Parsons reported revenues of $1.49 billion, down 4.1% year on year and slightly below estimates, while Kratos posted revenues of $371 million, up 22.6% year on year and 8.1% above estimates, though its stock fell 11.9% to $54.18. Overall, the group beat revenue consensus by 3.4% but guided next-quarter revenue 2.3% below expectations, and share prices across the sector have declined an average of 4.3% since earnings.

Impact on stocks 5

Defense & Geopolitical Fragmentation± Mixed · 5 stocks
Lockheed Martin Corporation
LMT
▼ NegativeCapitalrelevance

Flat revenues missed estimates by 0.9% and significant miss on adjusted operating income and EPS, stock fell 8%.

Mercury Systems Inc
MRCY
▲ PositiveCapitalrelevance

Revenue beat by 14.2% (largest beat among peers), stock surged 38.8%.

Parsons Corp
PSN
▼ NegativeCapitalrelevance

Revenues down 4.1% year on year and slightly below estimates.

Theme Impact 2

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