Aerospace and defense company Mercury Systems (NASDAQ:MRCY) will be reporting results this Tuesday afternoon. Here’s what to look for.
Mercury Systems beat analysts’ revenue expectations last quarter, reporting revenues of $232.9 million, up 4.4% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS and EBITDA estimates.
Is Mercury Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Mercury Systems’s revenue to decline 2.4% year on year, a reversal from the 1.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mercury Systems rarely misses Wall Street’s revenue estimates.
Looking at Mercury Systems’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. General Dynamics delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 5.9%, and RTX reported revenues up 8.7%, topping estimates by 2.7%. General Dynamics traded up 9.5% following the results while RTX was down 7.6%.
Read our full analysis of General Dynamics’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 9.4% on average over the last month. Mercury Systems is up 3.3% during the same time and is heading into earnings with an average analyst price target of $96.88 (compared to the current share price of $78.22).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.