BAE Systems (LON:BAES), the U.K.-based defense giant, on Monday, reported a surge in orders that has led the company to raise its sales growth outlook for the year. The firm has seen more than £30 billion ($36.68 billion) in orders this year, reflecting sustained confidence from its customers.
Building on last year's sales of £23.26 billion, BAE Systems' board is now projecting sales growth of 5% to 7%. This adjustment marks an increase from its previous guidance. The company's underlying earnings before interest and taxes (EBIT) are expected to climb between 6% and 8%, indicating robust profitability alongside top-line growth.
CEO Charles Woodburn highlighted the company's performance, noting "another year of significant sales and earnings growth" coupled with "strong cash flow generation." These factors contribute to BAE Systems' upwardly revised expectations for revenue expansion.
Additionally, the firm anticipates earnings per share (EPS) to grow by 10% to 12%, a bullish signal for investors. This update comes as BAE Systems continues to make progress across both new and existing programs within its pipeline, underpinning the company's financial health and operational momentum.
InvestingPro Insights
According to real-time data from InvestingPro, BAE Systems has a market capitalization of $40.91 billion and a P/E ratio of 17.39. The company's revenue for the last twelve months as of Q2 2023 was $28,594.29 million, indicating a growth rate of 13.03%. This aligns with the company's reported surge in orders and increased sales growth outlook.
InvestingPro Tips highlight that BAE Systems has a perfect Piotroski Score of 9, indicating a strong financial health. The company's high earnings quality is also evident, with free cash flow exceeding net income. Furthermore, BAE Systems has raised its dividend for 19 consecutive years, which is a positive sign for investors looking for consistent returns.
These insights, along with 14 additional tips, are available for BAE Systems on InvestingPro. These tips can provide a deeper understanding of the company's financial health and investment potential.
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