FINWIRES · TerminalLIVE
FINWIRES

Applied Aerospace & Defense Has Positive Q2 Fundamentals, Morgan Stanley Says

By

Applied Aerospace & Defense (AADX) shows several positive fundamental dynamics coming out of Q2, despite the market's reaction to the company's first earnings as a public company, Morgan Stanley said in a Thursday note.

Building on this, Morgan Stanley said that the company is exposed to positive end-market growth dynamics, particularly in its C5ISR & Precision Strike segment, which is poised to benefit as defense primes convert missile framework agreements into contracts.

While the company's Q2 adjusted EBITDA margin was below expectations, Morgan Stanley said that it continues to see a path for margin expansion from operating leverage and Consolidated Boring-related integration and synergy realization.

Additionally, as investors flag the company's negative free cash flow in Q2, management has noted that cash in H2 will benefit from the unwind of certain investments in net working capital in the front half of the year and the resolution of factors such as IPO- and transaction-related cash expenses.

Morgan Stanley adjusted its price target to $24 from $23 and maintained its equal-weight rating.

Price: $18.78, Change: $-0.33, Percent Change: -1.73%

Related Articles

Wire

GBM Resources Confirms Continuation of Prospective Gold Host at Queensland Project; Shares Down 5%

GBM Resources (ASX:GBM) confirmed the continuation of the prospective Milled Matrix Breccia host horizon at least 700 meters south of the 309 mineral resource at the Stella prospect, expanding the exploration footprint at the Twin Hills project in Queensland, according to a Thursday filing with the Australian bourse.The company intersected gold mineralization during step-out drilling, with assays returning 8 meters at 1.31 grams per tonne grade of gold from 126 meters, the filing said.Further assays are expected to be released in the next two weeks, per the filing.Shares fell 5% in midday trade Thursday.

ASX:GBM
Wire

Pan American Silver Q2 Adjusted Earnings, Revenue Rise; Shares Drop After Hours

Pan American Silver (PAAS) reported Q2 adjusted earnings late Wednesday of $0.73 per basic share, up from $0.43 a year earlier.Analysts polled by FactSet expected $0.88.Revenue for the quarter ended June 30 rose to $1.12 billion from $812 million a year earlier.Three analysts expected $1.15 billion.The company raised its quarterly dividend to $0.184 a share from $0.18, payable around Sept. 4 to stockholders of record Aug. 24.Pan American Silver shares fell 5.1% in after-hours trading.

$PAAS
Wire

Stantec Q2 Adjusted Earnings, Revenue Rise

Stantec (STN) reported Q2 adjusted earnings late Wednesday of 1.61 Canadian dollars ($1.15) per diluted share, up from CA$1.36 a year earlier.Analysts surveyed by FactSet expected CA$1.58.Net revenue in the three months ended June 30 rose to CA$1.78 billion from CA$1.6 billion a year earlier.Analysts projected CA$1.79 billion.Stantec shares rose 1.3% in after-hours trading.

$STN