Several defense firms are scheduled to report quarterly results on Tuesday, giving investors a peek into an industry seeing increased interest this year due to the war in Iran.
The Context:
Defense companies have been rushing to boost production of missiles--including efforts to build new factories--as the weapons remain in short supply for U.S. operations against Iran.
Many of those companies expect to spend more this year as a result. However, their order backlogs are growing at a faster rate, and many of the new missiles likely won't arrive for several years. President Trump and European defense ministers have said that companies need to pick up pace of the production.
Analysts will be looking for further clues into how the production efforts are going during the companies' earnings calls. They will also be keeping an eye on the companies' forecasts for capital expenditures.
The Numbers:
GE Aerospace is expected to post adjusted earnings of $2.01 a share on revenue of $12.88 billion, according to analysts polled by FactSet. That compares with adjusted earnings per share of $1.66 and revenue of $11.31 billion in the year-ago period.
Analysts expect RTX to report adjusted earnings per share of $1.78 and revenue of $24.11 billion. The company recorded adjusted earnings of $1.70 a share and revenue of $22.48 billion in the prior-year period.
Northrop Grumman is forecast to post adjusted earnings of $7.18 a share on revenue of $11.14 billion, compared with adjusted per-share earnings of $7.67 and revenue of $10.42 billion a year ago.
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