- BAE Systems’ Electronic Systems reported an underlying EBIT of GBP 1.07 billion, meeting the estimated figure.
- The company’s underlying EPS was 68.5p, slightly above the expected 67.0p.
- BAE’s total sales reached GBP 28.34 billion, surpassing the estimate of GBP 28.2 billion.
- Sales performance by sector:
- Electronic Systems: GBP 7.19 billion
- Platforms & Services: GBP 4.39 billion
- Air: GBP 8.52 billion
- Maritime: GBP 6.19 billion
- Cyber & Intelligence: GBP 2.41 billion
- HQ: GBP 203 million
- The operating profit was below expectations at GBP 2.69 billion versus an estimated GBP 2.84 billion.
- Free cash flow was notably higher at GBP 2.51 billion, beating the estimate of GBP 1.62 billion.
- Net operating cash flow reached GBP 3.93 billion, exceeding the forecasted GBP 2.83 billion.
- The company has a backlog valued at GBP 77.8 billion, greater than the projected GBP 72.59 billion.
- Yearly forecasts indicate sales growth of 7% to 9% and underlying EBIT and EPS growth of 8% to 10%.
- Analyst recommendations include 14 buys, 7 holds, and 1 sell.
A look at BAE Systems PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 prominent player in the defense and aerospace industry, holds a favorable long-term outlook based on its Smartkarma Smart Scores. With a solid rating in Growth and Momentum, the company is positioned for steady expansion and market momentum, indicating positive prospects for future revenue and business performance. Additionally, BAE Systems PLC demonstrates strong dividend potential, reflecting its commitment to rewarding shareholders. However, the company’s Value and Resilience scores suggest areas for potential improvement, which could be areas of focus for enhancing overall financial stability and competitiveness in the market.
As a leading developer and provider of sophisticated defense and aerospace systems, BAE Systems PLC caters to a global clientele with its diverse portfolio of military aircraft, ships, radar, avionics, and more. The company’s Smartkarma Smart Scores reveal a promising outlook, particularly in terms of growth and momentum. Despite facing some challenges in terms of value and resilience, BAE Systems PLC‘s strategic positioning in the defense sector and focus on technological advancements bode well for its long-term success and market positioning.
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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