RADA Electronic Industries Ltd (RADA – Free Report) is expected to release fourth quarter 2021 results on February 9, before the market opens.
In the last reported quarter, the company recorded a surprise profit of 9.09%. Additionally, RADA Electronic Industries has outperformed the Zacks consensus estimate over the past four quarters, generating a 47.47% earnings surprise on average.
Let’s see how things went before this announcement.
Factors to consider
Lately, RADA Electronic has witnessed delivery demands for its defense electronic products, especially for its counter drone applications around the world, following exogenous events such as drone attacks in various places around the world, such as the Gulf, Iraq, Syria and India, recently to name a few.
These increased delivery demands for its products, which are also expected to have prevailed in the fourth quarter, must have boosted the company’s sales, bolstering its top-tier performance in the soon-to-be-released quarter.
Zacks’ consensus estimate for RADA Electronic’s fourth quarter revenue is set at $31.5 million, indicating a 35.3% improvement over reported fourth quarter 2020 revenue.
These encouraging revenue projections make us optimistic about the company’s fourth quarter earnings.
Additionally, the company’s operating expenses are expected to have grown at a much slower pace than revenue in the fourth quarter. This likely boosted RADA Electronic’s quarterly operating margin, contributing favorably to the company’s fourth quarter earnings.
Zacks’ consensus estimate for the company’s fourth-quarter earnings is 13 cents per share, implying a solid 116.7% increase from the figure reported a year ago.
What the Zacks Model Reveals
Our proven model does not conclusively predict an earnings beat for RADA Electronic this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. That’s not the case here:
ESP Earnings: The ESP of the firm’s earnings is 0.00%. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
Zacks Rank: RADA Electronic currently wears a Zacks Rank #2.
Actions to consider
Here are three defense players you might want to consider as they have the right mix of elements to post a winning streak this season:
Aerojet Rocketdyne Holdings (AJRD – Free Report) has a +2.00% Earnings ESP and Zacks Rank #2. You can see the full list of today’s Zacks #1 Rank stocks here.
Aerojet has a four-quarter average negative earnings surprise of 2.17%. Zacks’ consensus estimate for AJRD’s fourth-quarter sales and earnings is pegged at $578.5 million and 50 cents per share, respectively.
Virgin Galactic Holdings, Inc.. (SPCE – Free Report) has a +26.12% Earnings ESP and Zacks Rank #2. Virgin Galactic has a four-quarter average negative earnings surprise of 33.86%.
Zacks’ consensus estimate for SPCE’s fourth-quarter earnings is set at a loss of 39 cents per share, indicating a deterioration from the reported figure for the year-ago quarter. Its sales estimate for 2021, set at $3.12 million, suggests a huge improvement from the $0.24 million reported in the year-ago quarter.
Triumph Group (TGI – Free Report) has a +1.01% Earnings ESP and Zacks Rank #3. Triumph Group achieved a surprise four-quarter average profit of 101.89%.
Zacks’ consensus estimate for TGI’s fourth-quarter sales and earnings are pegged at $368.8 million and 20 cents per share, respectively. Triumph Group is posting a long-term earnings growth rate of 2.6%.
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