As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace and defense industry, including Byrna 
BYRN and its peers.
Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.
The 29 aerospace and defense stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.7% below.
While some aerospace and defense stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.
Byrna BYRN
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna BYRN is a provider of non-lethal weapons.
Byrna reported revenues of $28.18 million, up 35.1% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with a beat of analysts’ EPS eand EBITDA estimates.
Unsurprisingly, the stock is down 23.7% since reporting and currently trades at $17.40.
Best Q3: RTX 
RTX
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
RTX reported revenues of $22.48 billion, up 11.9% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $172.38.
Is now the time to buy RTX? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Redwire 
RDW
Based in Jacksonville, Florida, Redwire RDW is a provider of systems and components used in space infrastructure.
Redwire reported revenues of $103.4 million, up 50.7% year on year, falling short of analysts’ expectations by 21.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.
Redwire delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 26.5% since the results and currently trades at $5.43.
Read our full analysis of Redwire’s results here.
Cadre 
CDRE
Originally known as Safariland, Cadre CDRE specializes in manufacturing and distributing safety and survivability equipment for first responders.
Cadre reported revenues of $155.9 million, up 42.5% year on year. This print lagged analysts’ expectations by 2.7%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ Products revenue estimates.
The stock is down 2.4% since reporting and currently trades at $41.50.
Read our full, actionable report on Cadre here, it’s free for active Edge members.
Huntington Ingalls 
HII
Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls HII develops marine vessels and their mission systems and maintenance services.
Huntington Ingalls reported revenues of $3.19 billion, up 16.1% year on year. This number surpassed analysts’ expectations by 8.1%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 5.6% since reporting and currently trades at $315.23.
Read our full, actionable report on Huntington Ingalls here, it’s free for active Edge members.
