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Defense Stocks Reporting Q4 Earnings on Jan 25: BA, TXT, HXL

Last week, Rockwell Collins COL reported better-than-expected earnings in first-quarter fiscal 2017, kick-starting the fourth-quarter 2016 earnings cycle for the defense sector. Sector behemoth Lockheed Martin Corp. LMT is scheduled to post its fourth-quarter and full-year 2016 results today. Several other defense players are geared up to report their quarterly numbers this week.

As of Jan 20, 2017, 19.1% of the S&P 500 index reported their quarterly results, with 66.7% beating EPS estimates and 50.8% surpassing the revenue mark. In comparison, only 3.2% of the Aerospace and Defense sector released their quarterly results, with 100% beating EPS estimates and none surpassing the revenue mark.

Total Q4 earnings from the Aerospace and Defense securities are expected to improve 18.6% year over year on 1.4% higher revenues. Meanwhile, earnings from the broader S&P 500 member cohort are expected to be up 4.8% year over year on 3.7% higher revenues. For more details on the quarterly releases, you can go through our Earnings Preview report.

Let's take a look at three defense companies - The Boeing Company BA , Textron Inc. TXT and Hexcel Corporation HXL - that are about to release their fourth-quarter 2016 results on Jan 25.

Boeing posted a positive earnings surprise of 33.97% in the preceding quarter.

However, our proven model does not conclusively show that Boeing is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Boeing carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here . The company has an Earnings ESP of 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.34 (read more: Boeing to Report Q4 Earnings: Will the Stock Surprise? ).

Boeing Company (The) Price and EPS Surprise

Boeing Company (The) Price and EPS Surprise | Boeing Company (The) Quote

Textron , a Zacks Rank #3 stock, posted an earnings surprise of 0.00% last quarter.

The company has an Earnings ESP of +0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 87 cents (read more: Is a Surprise in Store for Textron in Q4 Earnings? ).

Textron Inc. Price and EPS Surprise

Textron Inc. Price and EPS Surprise | Textron Inc. Quote

Hexcel , another Zacks Rank #3 stock, posted a positive earnings surprise of 6.56% last quarter.

The company has an Earnings ESP of +0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 62 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Hexcel Corporation Price and EPS Surprise

Hexcel Corporation Price and EPS Surprise | Hexcel Corporation Quote

Stay tuned! Check later for our full write-up on earnings releases of these stocks.

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Boeing Company (The) (BA): Free Stock Analysis Report

Lockheed Martin Corporation (LMT): Free Stock Analysis Report

Rockwell Collins, Inc. (COL): Free Stock Analysis Report

Hexcel Corporation (HXL): Free Stock Analysis Report

Textron Inc. (TXT): Free Stock Analysis Report

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


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

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