Revenue and Sales Forecast
BAE Systems is set to report their earnings for 2023 on Wednesday. According to FactSet, revenue consensus for the U.K. defense-and-aerospace group is expected to be around 24.77 billion pounds ($31.20 billion), based on forecasts from 14 analysts. This is an increase from the 2022 revenue of GBP21.26 billion. The company’s sales forecast, excluding the recent acquisition of Ball Aerospace, is anticipated to be between GBP24.28 billion and GBP25.09 billion, compared to the previous GBP23.26 billion.
Anticipated Net Profit
Net profit for BAE Systems is projected to reach GBP1.84 billion for 2023, according to FactSet and estimates from eight analysts. This surpasses the net profit of GBP1.59 billion reported in 2022.
Stock Performance
With shares currently trading at approximately 1,242.50 pence, BAE Systems has seen a significant increase of 40% over the last 12 months.
Key Points to Monitor
- Order Intake: Analysts expect the year’s order intake to range between GBP34 billion and GBP35 billion, marking an improvement from the GBP31 billion recorded at the 10-month mark.
- 2024 Guidance: Despite potential uncertainties related to U.S. budget and political changes in the U.K. and U.S., there is bipartisan support for defense spending in the U.S. This could result in heightened defense expenditures both in the U.S. and Europe. BAE’s guidance for 2024 will also encompass the impact of acquiring Ball Aerospace, expanding its presence in the military space market.
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