BWX Technologies (NYSE:BWXT) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• BWX Technologies (NYSE:BWXT) shares surged from a previous close of $154.51 to an opening price of $176.05 following a better-than-expected earnings report, which included earnings per share of $1.02 against a consensus estimate of $0.79.
• The company reported revenue of $764 million for the quarter, surpassing analyst expectations of $708 million and reflecting a 12.1% year-over-year increase.
• Analyst ratings have varied, with several firms upgrading their price targets and ratings, resulting in an overall consensus of a "Moderate Buy" with an average target price of $137.94.

Shares of BWX Technologies, Inc. (NYSE:BWXT - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $154.51, but opened at $176.05. BWX Technologies shares last traded at $186.30, with a volume of 405,200 shares.

The technology company reported $1.02 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.23. The company had revenue of $764.00 million during the quarter, compared to analyst estimates of $708.00 million. BWX Technologies had a return on equity of 30.26% and a net margin of 10.39%. The firm's revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.82 EPS.

Analyst Ratings Changes

Several brokerages have recently commented on BWXT. CLSA reissued an "outperform" rating and set a $177.60 price objective (up previously from $153.00) on shares of BWX Technologies in a report on Tuesday, May 27th. William Blair restated an "outperform" rating on shares of BWX Technologies in a research report on Wednesday, June 18th. Maxim Group dropped their target price on BWX Technologies from $140.00 to $136.00 and set a "buy" rating for the company in a research report on Thursday, May 8th. Wall Street Zen upgraded BWX Technologies from a "hold" rating to a "buy" rating in a research report on Saturday, July 12th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $150.00 target price (up previously from $119.00) on shares of BWX Technologies in a research report on Tuesday, July 8th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $137.94.

Institutional Investors Weigh In On BWX Technologies

Institutional investors have recently modified their holdings of the business. Creative Financial Designs Inc. ADV boosted its position in shares of BWX Technologies by 250.0% during the second quarter. Creative Financial Designs Inc. ADV now owns 175 shares of the technology company's stock valued at $25,000 after buying an additional 125 shares during the last quarter. Hantz Financial Services Inc. boosted its position in shares of BWX Technologies by 861.9% during the second quarter. Hantz Financial Services Inc. now owns 202 shares of the technology company's stock valued at $29,000 after buying an additional 181 shares during the last quarter. Stone House Investment Management LLC purchased a new stake in shares of BWX Technologies during the first quarter valued at $31,000. Compass Financial Services Inc purchased a new stake in shares of BWX Technologies during the first quarter valued at $33,000. Finally, Ameriflex Group Inc. purchased a new stake in shares of BWX Technologies during the fourth quarter valued at $34,000. 94.39% of the stock is owned by hedge funds and other institutional investors.

BWX Technologies Price Performance

The company has a debt-to-equity ratio of 1.08, a current ratio of 2.02 and a quick ratio of 1.91. The company has a market capitalization of $17.21 billion, a PE ratio of 59.73, a PEG ratio of 3.78 and a beta of 0.73. The firm has a 50-day moving average of $139.39 and a 200 day moving average of $117.92.

BWX Technologies Company Profile

BWX Technologies, Inc, together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers.

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