Wall Street Braces For A Barrage Of Aerospace Reports

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Concerns about cutbacks in defense spending occasionally weigh on names in IBD's Aerospace/Defense group. Wall Street will get more color on the issue when several large-cap leaders in the group report earnings this week.

A few aerospace names currently make the cut in today's Dividend Leaders screen. All are holding near highs as they consolidate gains. Pentagon contractorLockheed Martin ( LMT ) andRaytheon ( RTN ) were featured in this space on April 9 because of double-digit dividend growth rates.

Lockheed Martin reported Q1 results Tuesday before the open. Earnings came in better than expected at $2.87 a share, up 20% from a year ago. After-tax margin rose to 8.8% vs. 7% in the year-ago period. But sales fell 4% to $10.65 billion, the seventh straight drop. The firm said domestic military sales are expected to fall 6% this year after a 4% drop in 2013.


Lockheed Martin is working on a flat base, although an Accumulation/Distribution Rating of D- gives pause because it points toward intense institutional selling in recent weeks. The annualized dividend yield is 3.3%.

Raytheon, which reports earnings Thursday before the open, yields 2.4%. Analysts polled by Thomson Reuters expect profit to rise 13% to $1.77 a share. Shares hit an all-time high Tuesday ahead of the results.

Trading has been tight and orderly in Raytheon's flat base. It currently shows a buy point of 102.25, although more aggressive investors might have opted for an earlier entry at 100.91. Note that recent gains have come in average or below-average volume.

General Dynamics ( GD ) andNorthrop Grumman ( NOC ), meanwhile, report earnings on Wednesday before the open.

Quarterly profit at General Dynamics is seen rising 1% to $1.64 a share. Earnings at Northrop Grumman are expected to rise 6% to $2.15 a share. General Dynamics yields 2.3% and Northrop Grumman yields 2%.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: LMT , RTN , GD , NOC

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