Leonardo DRS (NASDAQ:DRS) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Leonardo DRS (NASDAQ:DRS) announced its quarterly earnings data on Thursday. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.02, Zacks reports. The business had revenue of $981.00 million during the quarter, compared to analyst estimates of $942.18 million. Leonardo DRS had a return on equity of 9.71% and a net margin of 6.23%. Leonardo DRS updated its FY 2025 guidance to 1.020-1.080 EPS.

Leonardo DRS Stock Down 2.7 %

Shares of DRS traded down $0.85 during trading hours on Friday, reaching $30.35. The company’s stock had a trading volume of 161,234 shares, compared to its average volume of 620,633. The company has a 50 day moving average of $33.67 and a two-hundred day moving average of $31.49. The company has a quick ratio of 1.70, a current ratio of 2.11 and a debt-to-equity ratio of 0.14. The firm has a market cap of $8.02 billion, a price-to-earnings ratio of 41.12, a P/E/G ratio of 1.30 and a beta of 1.01. Leonardo DRS has a 1-year low of $19.88 and a 1-year high of $37.99.

Leonardo DRS Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 27th. Investors of record on Thursday, March 13th will be given a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 1.19%.

Insider Activity at Leonardo DRS

In related news, SVP Pamela Morrow sold 11,100 shares of the company’s stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $34.81, for a total value of $386,391.00. Following the completion of the sale, the senior vice president now directly owns 12,565 shares in the company, valued at approximately $437,387.65. This represents a 46.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO William Lynn III sold 45,000 shares of the business’s stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $34.07, for a total value of $1,533,150.00. Following the completion of the sale, the chief executive officer now directly owns 234,937 shares of the company’s stock, valued at $8,004,303.59. This represents a 16.08 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 150,089 shares of company stock valued at $5,178,619. Corporate insiders own 0.12% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have weighed in on DRS shares. Robert W. Baird upped their price target on shares of Leonardo DRS from $30.00 to $40.00 and gave the company an “outperform” rating in a report on Thursday, October 31st. JPMorgan Chase & Co. increased their target price on shares of Leonardo DRS from $32.00 to $33.00 and gave the company a “neutral” rating in a research note on Friday. Finally, Truist Financial lifted their price target on shares of Leonardo DRS from $36.00 to $37.00 and gave the stock a “buy” rating in a research report on Tuesday, January 14th. Three research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $33.17.

Leonardo DRS declared that its board has authorized a stock repurchase plan on Thursday, February 20th that allows the company to buyback $75.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 0.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

About Leonardo DRS

Leonardo DRS, Inc, together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing.