Leonardo DRS (NASDAQ:DRS) Releases Earnings Results, Beats Expectations 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 analysts’ consensus estimates of $0.36 by $0.02, Zacks reports. Leonardo DRS had a net margin of 6.59% and a return on equity of 10.37%. The business had revenue of $981.00 million during the quarter, compared to the consensus estimate of $942.18 million. Leonardo DRS updated its FY 2025 guidance to 1.020-1.080 EPS.

Leonardo DRS Trading Down 7.5 %

Leonardo DRS stock opened at $28.85 on Friday. The firm has a 50 day simple moving average of $33.57 and a 200-day simple moving average of $31.51. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.11 and a quick ratio of 1.70. The stock has a market capitalization of $7.63 billion, a PE ratio of 36.52, a price-to-earnings-growth ratio of 1.41 and a beta of 1.01. Leonardo DRS has a 12-month low of $19.88 and a 12-month high of $37.99.

Leonardo DRS Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 27th. Shareholders of record on Thursday, March 13th will be given a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.25%. The ex-dividend date of this dividend is Thursday, March 13th.

Insider Activity

In related news, SVP Pamela Morrow sold 11,100 shares of the stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $34.81, for a total transaction of $386,391.00. Following the completion of the sale, the senior vice president now directly owns 12,565 shares of the company’s stock, valued at $437,387.65. This represents a 46.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Eric Salzman sold 3,477 shares of the stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $34.59, for a total transaction of $120,269.43. Following the sale, the director now directly owns 13,262 shares of the company’s stock, valued at approximately $458,732.58. This represents a 20.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 150,089 shares of company stock worth $5,178,619 over the last three months. Corporate insiders own 0.12% of the company’s stock.

Leonardo DRS declared that its board has initiated a stock repurchase plan on Thursday, February 20th that authorizes the company to repurchase $75.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 0.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

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

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.