Leonardo DRS (NASDAQ:DRS) Releases Earnings Results, Beats Expectations By $0.02 EPS

Leonardo DRS (NASDAQ:DRS) issued its quarterly earnings results on Thursday. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.36 by $0.02, Zacks reports. Leonardo DRS had a return on equity of 9.71% and a net margin of 6.23%. The firm had revenue of $981.00 million during the quarter, compared to analysts’ expectations of $942.18 million. Leonardo DRS updated its FY 2025 guidance to 1.020-1.080 EPS.

Leonardo DRS Price Performance

Shares of NASDAQ:DRS traded down $0.85 during midday trading on Friday, hitting $30.35. The stock had a trading volume of 161,234 shares, compared to its average volume of 620,633. Leonardo DRS has a fifty-two week low of $19.88 and a fifty-two week high of $37.99. The company has a market capitalization of $8.02 billion, a P/E ratio of 41.12, a price-to-earnings-growth ratio of 1.30 and a beta of 1.01. The company has a quick ratio of 1.70, a current ratio of 2.11 and a debt-to-equity ratio of 0.14. The company’s 50-day moving average price is $33.67 and its 200-day moving average price is $31.49.

Leonardo DRS Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Investors of record on Thursday, March 13th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 1.19%.

Insiders Place Their Bets

In other news, Director Eric Salzman sold 3,477 shares of the firm’s stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $34.59, for a total value of $120,269.43. Following the sale, the director now directly owns 13,262 shares in the company, valued at approximately $458,732.58. This trade represents a 20.77 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO William Lynn III sold 45,000 shares of the business’s stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $34.07, for a total transaction of $1,533,150.00. Following the sale, the chief executive officer now directly owns 234,937 shares in the company, valued at approximately $8,004,303.59. The trade was a 16.08 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 150,089 shares of company stock worth $5,178,619 over the last three months. Insiders own 0.12% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on DRS. Truist Financial raised their price objective 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 objective on shares of Leonardo DRS from $30.00 to $40.00 and gave the stock an “outperform” rating in a research note on Thursday, October 31st. Finally, JPMorgan Chase & Co. increased their target price on shares of Leonardo DRS from $32.00 to $33.00 and gave the stock a “neutral” rating in a research report on Friday. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Leonardo DRS has a consensus rating of “Moderate Buy” and a consensus price target of $33.17.

Leonardo DRS declared that its board has approved a stock repurchase plan on Thursday, February 20th that permits the company to repurchase $75.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 0.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

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.