DRS Earnings Prediction
The chart below shows how DRS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DRS sees a -3.82% change in stock price 10 days leading up to the earnings, and a +2.35% change 10 days following the report. On the earnings day itself, the stock moves by +3.73%. This data can give you a slight idea of what to expect for the next quarter's release.
DRS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
812.00M
15.50%
7.84%
Gross Margin
21.31%
-4.57%
-1.57%
Operating Margin
9.24%
6.45%
24.19%
Net Margin
7.02%
4.93%
39.01%
EPS
0.21
16.67%
50.00%
No Data Available
DRS Earnings Analysis
Leonardo DRS, Inc. Common Stock Corporation (DRS.O) Earnings Conference Call
Positive
Book-to-Bill Performance: 1. Strong Book-to-Bill Ratio: The company achieved a book-to-bill ratio of 1.3 in Q3, indicating robust demand and a healthy order intake.
Quarterly Revenue Surge: 2. Significant Revenue Growth: Quarterly revenue grew by 16% year-over-year, driven by strong customer demand across various segments.
Adjusted EBITDA Increase: 3. Increased Adjusted EBITDA: Adjusted EBITDA rose by 22% to $100 million, reflecting improved operational efficiency and higher volume.
Adjusted EPS Increase: 4. Higher Adjusted EPS: Adjusted diluted EPS increased by 20% year-over-year, reaching $0.24 per share, showcasing strong operational execution.
Backlog Growth Surge: 5. Robust Backlog Growth: The company reported $1.1 billion in bookings for Q3, contributing to a higher backlog both year-over-year and sequentially.
Negative
Quarterly Revenue Comparison: Quarterly revenue growth was 16% over last year, but the implied fourth quarter revenue was a tough compare due to the fact that we anniversaried the benefits from discrete improvements from our supply chain that began in Q4, 2023.
Revenue Guidance Variability: The variability in the revenue guidance range for 2024 will largely rest on the timing of material receipts and to some extent, the progress of labor inputs, indicating potential supply chain issues.
Adjusted EPS Outlook: The adjusted diluted EPS is now anticipated to be meaningfully higher, but the fully diluted share count remains static from the prior guide at 268 million, suggesting no share buybacks or reductions in share count.
Revenue Recognition Delays: The conversion of bookings and backlog to revenue has elongated compared to pre-COVID norms, indicating potential delays in revenue recognition.
Limited Ukraine Sales Impact: The company is seeing a limited impact from direct sales to Ukraine, which only accounts for 2% to 3% of sales, suggesting reliance on other markets for growth.
DRS FAQs
How does DRS typically perform around its earnings report dates?
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DRS Earning Call Sentiment
Leonardo DRS, Inc. (DRS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DRS.O
-1.15%Positive
The earnings call summary indicates strong financial performance with significant revenue and EPS growth, healthy backlog, and strategic partnerships. The Q&A session highlights management's confidence in handling supply chain challenges and the absence of indirect risks to key programs. Despite uncertainties like geopolitical conflicts, the optimistic guidance and robust demand outlook, particularly in international markets, suggest a positive stock price movement. The company's focus on M&A and efficiency improvements further supports this sentiment.
