Leonardo DRS (NASDAQ:DRS) Announces Earnings Results

Leonardo DRS (NASDAQ:DRS - Get Free Report) issued its earnings results 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 business had revenue of $981.00 million for 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 DRS stock traded down $2.35 during trading on Friday, hitting $28.85. The company had a trading volume of 1,577,732 shares, compared to its average volume of 663,454. The stock's 50-day moving average is $33.57 and its two-hundred day moving average is $31.51. The stock has a market capitalization of $7.63 billion, a price-to-earnings ratio of 38.99, 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. Leonardo DRS has a 52 week low of $19.88 and a 52 week high of $37.99.

Leonardo DRS Dividend Announcement

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

Insider Buying and Selling at Leonardo DRS

In other Leonardo DRS news, CEO William Lynn III sold 45,000 shares of the firm's stock in a transaction dated 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 owns 234,937 shares in the company, valued at $8,004,303.59. This trade represents a 16.08 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Pamela Morrow sold 11,100 shares of Leonardo DRS stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $34.81, for a total value of $386,391.00. Following the sale, the senior vice president now directly owns 12,565 shares of the company's stock, valued at approximately $437,387.65. This trade represents a 46.90 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 150,089 shares of company stock worth $5,178,619 over the last three months. 0.12% of the stock is owned by insiders.

Leonardo DRS declared that its Board of Directors has approved a stock buyback program on Thursday, February 20th that allows the company to buyback $75.00 million in shares. This buyback authorization allows the company to reacquire up to 0.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

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

Leonardo DRS Company Profile

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.