Leonardo DRS (NASDAQ:DRS) Updates FY 2025 Earnings Guidance

Key Points

• Leonardo DRS updated its FY 2025 earnings guidance, projecting earnings per share between 1.060 and 1.110, slightly above the consensus estimate of 1.079, and expects revenue of $3.5 billion to $3.6 billion.
• The company's stock is currently down 2.1%, with a market capitalization of $12.56 billion and trading at around $47.21.
• Leonardo DRS also announced a quarterly dividend of $0.09 per share, reflecting an annualized dividend yield of 0.76%.

Leonardo DRS (NASDAQ:DRS - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 1.060-1.110 for the period, compared to the consensus estimate of 1.079. The company issued revenue guidance of $3.5 billion-$3.6 billion, compared to the consensus revenue estimate of $3.5 billion.

Leonardo DRS Stock Performance

NASDAQ:DRS traded up $0.07 during trading hours on Friday, reaching $41.67. The company had a trading volume of 2,186,310 shares, compared to its average volume of 1,382,931. The firm has a market cap of $11.09 billion, a price-to-earnings ratio of 44.81, a PEG ratio of 2.37 and a beta of 0.65. The company has a current ratio of 2.11, a quick ratio of 1.70 and a debt-to-equity ratio of 0.13. The firm's 50 day moving average price is $45.25 and its 200-day moving average price is $38.50. Leonardo DRS has a 52 week low of $22.73 and a 52 week high of $49.31.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.22 by $0.01. The business had revenue of $829.00 million during the quarter, compared to the consensus estimate of $824.50 million. Leonardo DRS had a return on equity of 11.02% and a net margin of 7.31%. The business's quarterly revenue was up 10.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.18 EPS. On average, analysts forecast that Leonardo DRS will post 1.04 EPS for the current year.

Leonardo DRS Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Wednesday, August 20th will be paid a dividend of $0.09 per share. The ex-dividend date is Wednesday, August 20th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. Leonardo DRS's payout ratio is 38.71%.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. BTIG Research set a $49.00 price target on shares of Leonardo DRS and gave the stock a "buy" rating in a research report on Monday, May 5th. Morgan Stanley raised their price target on Leonardo DRS from $44.00 to $47.00 and gave the company an "equal weight" rating in a report on Thursday. Truist Financial upped their price objective on Leonardo DRS from $45.00 to $51.00 and gave the stock a "buy" rating in a research note on Friday, July 11th. JPMorgan Chase & Co. lifted their target price on Leonardo DRS from $33.00 to $48.00 and gave the company a "neutral" rating in a research note on Monday, June 16th. Finally, The Goldman Sachs Group initiated coverage on Leonardo DRS in a research note on Monday, June 30th. They issued a "buy" rating and a $49.00 price target for the company. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $46.29.

Insider Activity

In related news, Director David W. Carey sold 6,438 shares of the business's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $45.94, for a total value of $295,761.72. Following the sale, the director owned 23,882 shares in the company, valued at approximately $1,097,139.08. The trade was a 21.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On Leonardo DRS

Several large investors have recently added to or reduced their stakes in the stock. Millennium Management LLC boosted its stake in shares of Leonardo DRS by 29.0% in the first quarter. Millennium Management LLC now owns 369,749 shares of the company's stock worth $12,157,000 after acquiring an additional 83,077 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Leonardo DRS by 9.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 148,474 shares of the company's stock valued at $4,882,000 after purchasing an additional 12,712 shares during the last quarter. Intech Investment Management LLC raised its stake in shares of Leonardo DRS by 18.6% in the 1st quarter. Intech Investment Management LLC now owns 48,560 shares of the company's stock valued at $1,597,000 after acquiring an additional 7,625 shares during the period. Acadian Asset Management LLC purchased a new position in shares of Leonardo DRS during the first quarter worth $225,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Leonardo DRS by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 43,817 shares of the company's stock worth $1,441,000 after purchasing an additional 1,922 shares during the period. 18.76% of the stock is owned by institutional investors.

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.