Leonardo DRS (NASDAQ:DRS) Announces Quarterly Earnings Results

Leonardo DRS (NASDAQ:DRS - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.36 by $0.02, Zacks reports. Leonardo DRS had a net margin of 6.23% and a return on equity of 9.71%. The company 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

NASDAQ:DRS traded down $2.35 during mid-day trading on Friday, reaching $28.85. 1,577,732 shares of the company were exchanged, compared to its average volume of 663,454. Leonardo DRS has a 12 month low of $19.88 and a 12 month high of $37.99. The company has a fifty day moving average of $33.57 and a 200 day moving average of $31.51. 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 stock has a market cap of $7.63 billion, a PE ratio of 38.99, a PEG ratio of 1.30 and a beta of 1.01.

Leonardo DRS Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on DRS shares. Truist Financial increased their price objective on shares of Leonardo DRS from $36.00 to $37.00 and gave the company a "buy" rating in a research note on Tuesday, January 14th. JPMorgan Chase & Co. increased their price objective on shares of Leonardo DRS from $32.00 to $33.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Robert W. Baird increased their price objective on shares of Leonardo DRS from $30.00 to $40.00 and gave the company an "outperform" rating in a research note on Thursday, October 31st. Three equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $33.17.

Leonardo DRS announced that its Board of Directors has approved a share repurchase program on Thursday, February 20th that authorizes the company to buyback $75.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 0.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, CEO William Lynn III sold 45,000 shares of the firm's stock in a transaction dated Friday, January 31st. The shares were sold at an average price of $35.25, for a total value of $1,586,250.00. Following the transaction, the chief executive officer now owns 189,937 shares of the company's stock, valued at approximately $6,695,279.25. This trade represents a 19.15 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eric Salzman sold 3,477 shares of the firm's stock in a transaction dated Tuesday, February 11th. The shares were sold at an average price of $34.59, for a total transaction of $120,269.43. Following the completion of the transaction, the director now directly owns 13,262 shares in the company, valued at $458,732.58. This trade represents a 20.77 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 150,089 shares of company stock valued at $5,178,619 in the last 90 days. 0.12% of the stock is currently owned by insiders.

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.