What Happened?
Shares of aerospace and defense company Leonardo DRS (NASDAQ:DRS) jumped 14.4% in the morning session after the company reported a "beat and raise" quarter. Third quarter results blew past analysts' revenue, EBITDA, and EPS expectations. The top line benefited from demand for programs related to advanced infrared sensing, force protection and tactical radars, while the bottom line was supported by improved volumes.
Looking ahead, the company lifted its full-year revenue and EBITDA/EPS guidance. Zooming out, we think this was a solid "beat and raise" quarter.
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What The Market Is Telling Us
Leonardo DRS’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Leonardo DRS and indicate this news significantly impacted the market’s perception of the business.
Leonardo DRS is up 64% since the beginning of the year, and at $32.34 per share, has set a new 52-week high.
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