BWX Technologies (NYSE:BWXT) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

BWX Technologies, Inc. (NYSE:BWXT) is scheduled to report Q3 earnings results before markets open for trading on November 2, 2020.

The company is expected to report earnings of $0.66/share on revenue of $489.2 million. The consensus earnings per share (EPS) of $0.66/share is based on a poll of 7 analysts and represents a decline in eps of −16.4% over the same quarter last year, when the company reported earnings of $0.79/share.

The revenue forecast of $489.2 million based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −3.3%. Last year the company reported $506 million in revenue for the quarter.

Expected to report EPS contraction of −16.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $489.24 $506.00 −3.3%
EPS $0.66 $0.79 −16.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from BWX Technologies, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.56 $0.71 27.4% Beat
Q1, 2020 $0.61 $0.79 30.2% Beat
Q4, 2019 $0.64 $0.71 11.5% Beat
Q3, 2019 $0.65 $0.79 22.5% Beat
Q2, 2019 $0.52 $0.62 18.9% Beat
Q1, 2019 $0.60 $0.51 −14.6% Missed
Q4, 2018 $0.59 $0.74 24.9% Beat
Q3, 2018 $0.62 $0.40 −35.3% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 3, 2020 $54.52 $58.84 7.9% Increase
May 4, 2020 $51.71 $54.15 4.7% Increase
February 24, 2020 $70.15 $60.76 −13.4% Decline
November 4, 2019 $58.38 $60.28 3.3% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.61, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.61 implies a 0.4% chance of earnings manipulation.

Fundamentals And Technical Analysis

BWX Technologies, Inc. is currently trading at $56.63/share, down −1.8% for the day. The company is trading at approximately 80.2% of its 52-week high of $70.57/share. The company’s stock price is down −3.8% since the last earnings report and up 0.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 48.28 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:BWXT Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.55 and a forward P/E multiple of 19.93.

BWX Technologies, Inc.’s current share price also implies a price-to-book (P/B) multiple of 11.21. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $56.63
P/E Ratio 19.6x
P/E Ratio (Fwd) 19.9x
PEG Ratio 0.6
Total Debt / Total Capital 13.1%
Levered Free Cash Flow $166 million
EV / EBITDA 14.3x

Finbox

BWX Technologies, Inc. is a mid-cap stock with a market capitalization of $5.396 billion and a total enterprise value of $6.158 billion. The company operates in the Industrials sector and the Aerospace & Defense industry.

BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. Its Nuclear Operations Group segment offers nuclear components, reactors, assemblies, and fuel for the United States Department of Energy/National Nuclear Security Administration’s Naval Nuclear Propulsion Program and other uses; close-tolerance equipment for nuclear applications; research reactor fuel elements for colleges, universities, and national laboratories; and components for defense applications. It also provides missile launch tubes for the United States Navy submarines; converts high-enriched uranium into low-enriched fuel for use in commercial reactors to generate electricity; and receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials. Its Nuclear Services Group segment provides nuclear materials processing, environmental site restoration, and management and operating services for the United States government-owned facilities; develops technology for advanced nuclear power sources application and customized tooling solutions; designs, engineers, licenses, and manufactures reactors; and inspects and services steam generators, heat exchangers, and balance of plants; and provides high pressure water lancing and non-destructive examination services, and nuclear fuel. Its Nuclear Power Group segment offers commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and containers; nuclear fuel, fuel handling systems, tooling delivery systems, and related services, as well as engineering and in-plant services for nuclear power plants; and medical radioisotopes and radiopharmaceuticals. It also designs, manufactures, commissions, and services nuclear power generation equipment. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. The company was founded in 1867 and is headquartered in Lynchburg, Virginia.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.