High defence spending from major powers like India, China and Japan is likely to drive defence sector revenue growth in 2018 and beyond.
Defence sector is likely to experience steep rise in the revenue in the year 2018 and beyond as the global security threats and defence spending from the countries like China, India and Japan heightens.
This year, there is a 23.6 per cent rise in the sector’s market capitalization on the S&P 500 index with 77.8 per cent beating EPS and 88.9 per cent topping revenue. Last year in the same period it was 7.6 per cent rise.
Earnings
Boeing has reported $24.26 billion in revenues. It has surpassed the Zacks Consensus revenue of $23.98 billion this year and last year’s figure of $22.74 billion. Boeing has raised its 2018 revenue guidance from $96-$98 billion to $97-$99 billion.
United Technologies has gained the highest revenue with the estimation of $441 million. Earning per share and revenues increased from $1.85 and $15.28 billion respectively. This year’s earnings view increased to $7.10-$7.25 per share from last year’s earning of $63.5-$64.5 billion range.
Northrop Grumman’s earnings per share (EPS) is $3.93 and it beat the Zacks Consensus estimate of $3.83 and improved 24.76 per cent year by year. Revenue figure of $7.12 billion also surpassed the past estimation of $7.00 billion and improved from $6.37 billion in the year ago quarter. The company is expecting to generate a revenue of $30 billion by 2018.
General Dynamics has gained EPS of $2.82 and improved last year’s earning of $2.45. The company expected a revenue of $9.10 billion but gained $9.19 billion beating its own last year’s $7.67 billion revenue figure.
Lockheed Martin’s earned EPS of $4.31 per share and easily beat the estimate by 42 cents. Also, revenues of $13.40 billion surpassed by $649 million. The company is expected to generate revenue of $51.6-$53.1 billion, which is higher than projected value of $50.35-$51.85 billion.
Raytheon’s earning figure surprisingly came to be 5.60 per cent and revenue of 1.94 per cent. Earnings and revenue increased to 23.7% and 5.5%, respectively, from the year-ago quarter. The company expects 2018 revenue in the range of $26.7-$27.2 billion, up from the prior guidance range of $26.5-$27 billion.
