Mercury Systems (MRCY) Q2 Earnings Report Preview: What To Look For
Aerospace and defense company Mercury Systems (NASDAQ:MRCY) will be reporting results this Tuesday afternoon. Here’s what to look for.
Mercury Systems beat analysts’ revenue expectations last quarter, reporting revenues of $235.8 million, up 11.5% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Mercury Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Mercury Systems’s revenue to decline 2.8% year on year, a reversal from the 9.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Mercury Systems has a history of exceeding Wall Street’s expectations.
Looking at Mercury Systems’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Huntington Ingalls delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 8.2%, and RTX reported revenues up 14.5%, topping estimates by 7.8%. Huntington Ingalls traded up 16.4% following the results while RTX was also up 9.2%.
Read our full analysis of Huntington Ingalls’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 4.6% on average over the last month. Mercury Systems is up 17.2% during the same time and is heading into earnings with an average analyst price target of $106.22 (compared to the current share price of $111.06).
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