SPDR® S&P Aerospace & Defense ETF
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What’s behind TAT Technologies’ Exceptional Dividend Yield?
TAT Technologies (TATT) caters to the commercial and military aviation industries.
Why General Electric’s Aviation Segment Revenue Rose in 1Q17
Revenue for General Electric’s (GE) Aviation segment was $6.8 billion in 1Q17, a 9.0% rise from $6.2 billion in 1Q16.
Analyzing JEC’s Backlog Position and Restructuring Actions
Jacobs Engineering’s backlog position rose by $440 million sequentially to $18.8 billion in 4Q16. It’s just 2% shy of the previous record of $19.1 billion.
How Does Jacobs Engineering Look for Fiscal 2017?
In the 4Q16 earnings call, Jacobs Engineering provided its initial guidance for the adjusted EPS and a brief overview of the prevailing market conditions.
TransDigm Stock Dips on Weak Fiscal 2017 Guidance
TransDigm’s adjusted earnings per share rose 10.8% year-over-year to $2.77 and beat estimates by $0.09 in fiscal 4Q16.
Defense Sector Stocks Achieve Liftoff from Trump’s Victory
Because Republicans retained control of both legislative houses, investors expected that defense budgets would be easier to pass.
TDG Boosted Its Proprietary Product Revenue with This Acquisition
TransDigm (TDG) has increased the size of its existing term loan facility by $650 million to facilitate a one-time special dividend of $24 per share.
The Strategic Rationale behind the Rockwell Collins–B/E Aerospace Deal
There is little overlap between the product portfolios of Rockwell Collins (COL) and B/E Aerospace (BEAV). Rockwell Collins manufactures high-value avionics and electronic components, and B/E Aerospace supplies interior aircraft products.
Higher G650 Mix Puts Margins of General Dynamics in Top Gear
Despite the challenging conditions, General Dynamics (GD) has managed to raise its margins in its Aerospace segment.
Textron Stock Gains as It Allays Concerns of Earnings Downgrade
Textron announced its 3Q16 earnings on October 20, 2016. Its earnings resulted in a price rise of nearly 3.7%, and the stock closed at $39.49 that day.
Why Is Raytheon’s Reliance on the Army a Concern?
Raytheon is protected from US government spending due to its high international exposure. However, its Army exposure is a source of risk.
Northrop Grumman Faces Dogfight over Air Force Trainer Contract
The US Air Force has put up an order for 350 trainer aircraft on competing bids. The request for proposal is likely to be finalized by December 2016.
What’s J.P. Morgan’s View on the Central Bank?
Samantha Azzarello thinks that the central bank’s monetary stimulus is the major reason behind the economy (IWM) (QQQ) and market movement.
NetJets Orders Secure Textron Aviation amid Business Jet Weakness
Textron Aviation increase its sales in the last two quarters after gaining traction for its new Latitude business jets. It has secured 150 orders from NetJets.
How Lockheed Martin Might Use Cash Proceedings from the Leidos Deal
On August 16, Lockheed Martin completed the separation of its Information Systems & Global Solutions, which was merged with a subsidiary of Leidos Holdings.
What Can We Learn from Analyzing 20 Years of UTX’s ROIC?
An analysis of UTX’s return on invested capital between 1996 and 2015 shows that 1999 and 2012–2015 were the only years when its ROIC fell below 15%.
How United Technologies’ ROIC Compares to Its Peers’
United Technologies’ falling ROIC is due to delayed payoffs, and its numbers should improve when its investments start paying off.
How United Technologies Has Evolved over the Years
The origins of United Technologies (UTX) lie in the creation of the United Aircraft and Transportation Company (or UATC) in 1929.
Transdigm Continues as a ‘Super Stock’ in 2016
Transdigm Group (TDG) became public in March 2006. Since then, the company’s stock has compounded wealth at an astonishing clip.
Transdigm Buys DDC, Its Second-Largest Deal Ever
On May 24, Transdigm announced that it signed a definitive agreement to acquire DDC from Behrman Capital for a purchase price of $1 billion in cash.
What Were the Key Drivers behind Transdigm’s Revenue Gains?
In 3Q16, Transdigm Group’s (TDG) revenues were up 15.4% YoY to $797.7 million—below Wall Street analysts’ consensus estimates of $804.5 million.
Why Parker-Hannifin Shares Rose 4.6% on August 4
Parker-Hannifin (PH), a leading manufacturer of motion and control technologies, declared its 4Q16 earnings on August 3, 2016.
Despite a Downgrade, Spirit AeroSystems’ Guidance Looks Good
Despite a significant drop in profits, Spirit AeroSystems Holdings’ (SPR) FCF (free cash flows) were flat YoY (year-over-year) at $161 million.
Spirit AeroSystems’ Revenues Take Flight on Airbus 320 in Q2
Spirit AeroSystems’ revenues increased by 7.7% YoY to $1.83 billion in 2Q16. This was higher than Wall Street estimates of $1.69 billion.
Spirit AeroSystems’ Shares Take a Hop as it Wings Airbus Deal
In 2Q16, Spirit AeroSystems’ Fuselage Systems represented 50% of total revenues. Propulsion Systems and Wing Systems made up 26.3% and 23.2%, respectively.
How Major Analysts View General Dynamics Stock
Currently, 13 analysts have a “buy” rating on General Dynamics stock, and the rest have a “hold” rating. The average 12-month target price is $162.23.
Weak Business Jet Hurt General Dynamics’ Sales
In General Dynamics’ Aerospace (XAR) segment, which is another name for the Gulfstream business jet subsidiary, sales fell 5.5% due to persistent weakness in demand.
Investors Should Be Patient with Pratt & Whitney’s Engine Investments
United Technologies (UTX) achieved 100% conversion of net income into cash flows in 2Q16 compared to 76% in 2Q15.
Why HON Split Automation and Control Solutions into 2 Parts
The Honeywell (HON) Automation and Control Solutions unit is a $14.1 billion enterprise and houses five different businesses serving different end markets.
Defense a Key Sales Driver in Honeywell’s Aerospace Segment
Honeywell’s (HON) Aerospace (ITA) segment is its largest business unit. It contributed to 37.8% of the company’s sales in 2Q16.
Honeywell Sales Grounded by Weak Aerospace Results in 2Q16
Honeywell’s (HON) revenue rose by 2.2% to $10 billion in 2Q16 compared to analysts’ consensus estimate of $10.1 billion.
Why LMT’s Capital Allocation Is Unlikely to Disappoint Investors
In January 2016, Lockheed Martin unveiled its plan to shed its Information Systems and Global Solutions segment and merge it with Virginia-based Leidos Holdings (SAI).
Lockheed Martin’s Space Systems a Shining Star for Profits
The aeronautics (XAR) segment is Lockheed Martin’s largest segment and contributed 33.6% to overall segment profits in 2Q16.
Other Defense Majors Made for Better 2016 Picks Than Raytheon
Raytheon (LMT) has managed to beat consensus EPS (earnings per share) as well as revenue estimates seven times in the last eight quarters.
Raytheon Still Hopeful about Its German Patriot Deal
The US government gave a green light to Raytheon (RTN) in 2015 to export its 360-degree Gallium Nitride Active Electronically Scanned Array radar to 13 partner countries.
Rockwell Collins: The View from Altitude for 2016
On July 14, 2016, Rockwell Collins (COL) stock closed at $85.82, and it had a trailing PE ratio of 17x.
How Do Major Analysts View Rockwell Collins’s Stock?
The consensus rating among the 19 analysts covering Rockwell Collins (COL) leans toward a “buy” call.
Market Expectations from Rockwell Collins in Its 3Q16 Earnings
Rockwell Collins (COL), which makes avionics for commercial and military aircraft, is scheduled to declare its 3Q16 earnings on July 25. The consensus analyst estimate COL’s adjusted EPS to rise by 19% on a year-over-year basis to $1.58.
How Elon Musk’s SpaceX Is Turning Up the Heat on Lockheed Martin
Lockheed Martin’s (LMT) Space Systems segment generated $9.1 billion in revenues in 2015, representing 20% of total annual revenues.
Lockheed Martin’s Deal with the Pentagon for 160 F-35 Aircraft
Lockheed Martin’s (LMT) Aeronautics (XAR) business segment accounted for $15.6 billion, or 34%, of consolidated net sales in 2015.
Lockheed Martin’s Fantastic Stock Run in 2016
Lockheed Martin (LMT) has managed to beat consensus EPS (earnings per share) estimates seven times in the last eight quarters.
How Used Aircraft Could Drive Honeywell’s Growth
Honeywell (HON) Aerospace was Honeywell’s largest business segment in 2015, constituting 39.5% of total company sales.
Word on the Street: Market Expectations from UTX’s 2Q16 Results
The consensus estimate among Wall Street analysts is for United Technologies’s (UTX) adjusted earnings per share to fall by 7% year-over-year to $1.68 in 2Q16.
Will General Electric Aviation Fly High in 2Q16?
General Electric’s (GE) Aerospace (ITA) segment is its largest business unit. It contributed to 24.0% of industrial sales in 1Q16.
Is David Rubenstein Optimistic about US Presidential Election?
Rubenstein commented about the US presidential election, saying that whoever wins, it probably won’t accelerate economic growth in the United States.
Why the Honeywell-United Technologies Merger Failed to Take Off
Both Honeywell and United Technologies recently confirmed that they had engaged in conversations related to a potential merger to create a global aerospace behemoth.
What You Should Know about Honeywell Aerospace’s Regional Markets
The United States is the largest market for Honeywell’s Aerospace (XAR) unit, accounting for 48% of total sales by region.
Why Honeywell Aerospace Is a High-Margin Business
In the aerospace market, Honeywell (HON) provides mechanical and avionics equipment to airplane manufacturers, the space and defense industry, and flight operators.
How Does HEICO Corporation Compare to Its Peers?
The PBV (price-to-book value) ratios of HEICO, United Technologies, Honeywell International, Esterline Technologies Corporation, and Triumph Group are 4.3x, 2.7x, 4.3x, 1.6x, and 0.75x, respectively.
HEICO Corporation’s Revenue and Income Rose in Fiscal 4Q15
After HEICO’s (HEI) fiscal 4Q15 earnings report, HEI rose by 1.8% to close at $49.61 per share on December 15, 2015.
China Southern Airlines’ Performance in a Competitive Market
China Southern Airlines’ YTD performance is 14.90%. DEF is -7.98%. DEF’s PE ratio is 15.84x. China Southern Airlines is trading at a PE ratio of 5.43x.
Organic Growth Boosts China Southern Airlines’ Performance
China Southern Airlines is a $10.56 billion company. It’s affiliated with China Southern Air Holding Company. It specializes in air transportation services.
