Aerospace and defense company Redwire (NYSE: RDW) will be reporting earnings this Wednesday after market hours. Here’s what to look for.
Redwire beat analysts’ revenue expectations last quarter, reporting revenues of $108.8 million, up 56.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Redwire 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 Redwire’s revenue to grow 70.4% year on year, a reversal from the 30.1% decrease 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. Redwire has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Redwire’s peers in the aerospace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 4.1%, and Boeing reported revenues up 14%, topping estimates by 2.9%. AAR traded up 9.9% following the results while Boeing was also up 6.8%.
Read our full analysis of AAR’s results here and Boeing’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 7.6% on average over the last month. Redwire is down 11.8% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $8.74).
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