- BAE upholds its FY sales forecast, projecting a growth of +10% to +12%.
- It anticipates an increment of +11% to +13% in underlying EBIT for the fiscal year.
- Underlying EPS is expected to increase by +6% to +8%.
- BAE predicts a free cash flow surpassing GBP1.3 billion, estimated to reach around GBP1.53 billion.
- Charles Woodburn, BAE Systems Chief Executive, commented that the performance of the company aligns with the projections and entrusts the long-term value-creating model, strengthened by their solid operational performance and backed-up orders.
- The recent approval of the US supplemental aid package for Ukraine and UK Government’s pledge to spend 2.5% of GDP by 2030 are seen as potential factors boosting positive momentum.
- Capital expenditure is anticipated to ascend compared to 2023, with primary focus areas being maritime, munitions and Swedish combat vehicle production capacity and capabilities.
- All these investment areas are included within the rolling 3-year cash guidance.
- As per the stock ratings, 12 are in the buy category, 8 in hold, and 2 in sell.
A look at BAE Systems PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
BAE Systems PLC, a leading developer and supplier of defense and aerospace systems, shows a promising long-term outlook according to Smartkarma Smart Scores. With a strong score in Momentum and Growth, the company is positioned for significant advancement in the industry. Additionally, a solid rating in Resilience indicates BAE Systems’ ability to withstand market fluctuations and challenges, showcasing a stable foundation for future growth.
Furthermore, BAE Systems PLC‘s above-average score in Dividend highlights its commitment to providing returns to shareholders. Although the Value score is moderate, the overall outlook for the company remains positive, emphasizing its potential for sustained success in the defense and aerospace sectors worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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