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

Leonardo DRS (NASDAQ:DRS) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.020-1.080 for the period, compared to the consensus estimate of 1.060. The company issued revenue guidance of $3.4 billion-$3.5 billion, compared to the consensus revenue estimate of $3.4 billion.

Leonardo DRS Stock Down 7.5 %

Shares of NASDAQ:DRS opened at $28.85 on Friday. 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 cap of $7.63 billion, a P/E ratio of 36.52, a P/E/G ratio of 1.41 and a beta of 1.01. Leonardo DRS has a 1-year low of $19.88 and a 1-year high of $37.99. The firm has a fifty day moving average price of $33.57 and a 200 day moving average price of $31.51.

Leonardo DRS (NASDAQ:DRS) last posted its quarterly earnings data on Thursday, February 20th. The company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.02. Leonardo DRS had a return on equity of 10.37% and a net margin of 6.59%. The company had revenue of $981.00 million during the quarter, compared to analysts’ expectations of $942.18 million. Sell-side analysts predict that Leonardo DRS will post 1.04 EPS for the current year.

Leonardo DRS Announces Dividend

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

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

Wall Street Analyst Weigh In

DRS has been the topic of several research analyst reports. Truist Financial boosted 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. Robert W. Baird lifted their price target 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. Finally, JPMorgan Chase & Co. raised their price target on Leonardo DRS from $32.00 to $33.00 and gave the company a “neutral” rating in a research report on Friday. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $33.17.

Insiders Place Their Bets

In other Leonardo DRS news, CEO William Lynn III sold 45,000 shares of the firm’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $34.07, for a total transaction of $1,533,150.00. Following the transaction, the chief executive officer now owns 234,937 shares of the company’s stock, valued at approximately $8,004,303.59. This trade represents a 16.08 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Michael Dippold sold 25,880 shares of the company’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $34.08, for a total transaction of $881,990.40. Following the completion of the sale, the chief financial officer now directly owns 47,028 shares of the company’s stock, valued at approximately $1,602,714.24. This represents a 35.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 150,089 shares of company stock valued at $5,178,619 over the last three months. Company insiders own 0.12% of the company’s stock.

Leonardo DRS Company Profile

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.