Winners And Losers Of Q4: Cadre (NYSE:CDRE) Vs The Rest Of The Aerospace and Defense Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at aerospace and defense stocks, starting with Cadre (NYSE:CDRE).

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 31 aerospace and defense stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.8% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Cadre (NYSE:CDRE)

Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Cadre reported revenues of $176 million, up 41.3% year on year. This print exceeded analysts’ expectations by 2.5%. Despite the top-line beat, it was still a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.

“2024 was another record year, as our teams continued to leverage the Cadre operating model and capitalize on positive demand trends for our best-in-class, mission-critical safety equipment,” said Warren Kanders, CEO and Chairman.Cadre Total Revenue

The stock is down 3.7% since reporting and currently trades at $32.28.

Read our full report on Cadre here, it’s free.

Best Q4: Mercury Systems (NASDAQ:MRCY)

Founded in 1981, Mercury Systems (NASDAQ:MRCY) specializes in providing processing subsystems and components for primarily defense applications.

Mercury Systems reported revenues of $223.1 million, up 13% year on year, outperforming analysts’ expectations by 23.9%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.Mercury Systems Total Revenue

Mercury Systems achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.8% since reporting. It currently trades at $45.81.

Is now the time to buy Mercury Systems? Access our full analysis of the earnings results here, it’s free.

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Weakest Q4: Boeing (NYSE:BA)

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Boeing reported revenues of $15.24 billion, down 30.8% year on year, falling short of analysts’ expectations by 6.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Boeing delivered the slowest revenue growth in the group. As expected, the stock is down 1.6% since the results and currently trades at $172.50.

Read our full analysis of Boeing’s results here.

CACI (NYSE:CACI)

Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.

CACI reported revenues of $2.1 billion, up 14.5% year on year. This result beat analysts’ expectations by 3.4%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ backlog and EBITDA estimates.

The stock is down 20.5% since reporting and currently trades at $369.66.

Read our full, actionable report on CACI here, it’s free.

Rocket Lab (NASDAQ:RKLB)

Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.

Rocket Lab reported revenues of $132.4 million, up 121% year on year. This number surpassed analysts’ expectations by 1.4%. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.

Rocket Lab pulled off the fastest revenue growth among its peers. The stock is down 7.5% since reporting and currently trades at $18.35.

Read our full, actionable report on Rocket Lab here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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