Leonardo DRS (NASDAQ:DRS) Issues Quarterly Earnings Results

Leonardo DRS (NASDAQ:DRS) posted its quarterly earnings results on Tuesday. The company reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.05, Briefing.com reports. Leonardo DRS had a return on equity of 11.37% and a net margin of 7.43%.During the same period in the prior year, the business earned $0.38 earnings per share. The business’s quarterly revenue was up 8.1% compared to the same quarter last year. Leonardo DRS updated its FY 2026 guidance to 1.200-1.260 EPS.

Leonardo DRS Trading Down 4.7%

Shares of DRS stock opened at $38.14 on Tuesday. The company has a current ratio of 2.00, a quick ratio of 1.63 and a debt-to-equity ratio of 0.12. The stock has a market cap of $10.15 billion, a P/E ratio of 38.92, a price-to-earnings-growth ratio of 1.99 and a beta of 0.45. The stock has a 50 day simple moving average of $38.35 and a 200 day simple moving average of $38.97. Leonardo DRS has a 1 year low of $28.17 and a 1 year high of $49.31.

Insiders Place Their Bets

In related news, EVP Sally Wallace sold 1,300 shares of the company’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $35.17, for a total transaction of $45,721.00. Following the completion of the sale, the executive vice president owned 58,353 shares of the company’s stock, valued at $2,052,275.01. This represents a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Michael Dippold sold 10,588 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $37.00, for a total transaction of $391,756.00. Following the completion of the transaction, the chief financial officer directly owned 42,952 shares in the company, valued at approximately $1,589,224. This represents a 19.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On Leonardo DRS

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quarry LP boosted its holdings in shares of Leonardo DRS by 7,041.7% in the 4th quarter. Quarry LP now owns 857 shares of the company’s stock valued at $29,000 after purchasing an additional 845 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Leonardo DRS during the 4th quarter worth $48,000. PNC Financial Services Group Inc. boosted its stake in Leonardo DRS by 435.0% in the third quarter. PNC Financial Services Group Inc. now owns 1,161 shares of the company’s stock valued at $53,000 after buying an additional 944 shares in the last quarter. Osaic Holdings Inc. grew its position in Leonardo DRS by 17.0% in the second quarter. Osaic Holdings Inc. now owns 2,383 shares of the company’s stock valued at $111,000 after acquiring an additional 347 shares during the last quarter. Finally, Focus Partners Wealth acquired a new position in Leonardo DRS during the third quarter worth about $204,000. 18.76% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Canaccord Genuity Group reaffirmed a “buy” rating and set a $50.00 price target on shares of Leonardo DRS in a report on Thursday, October 30th. Truist Financial set a $54.00 price objective on shares of Leonardo DRS in a research report on Friday, January 9th. Zacks Research cut Leonardo DRS from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 30th. Morgan Stanley set a $40.00 target price on Leonardo DRS in a research note on Tuesday, December 16th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Leonardo DRS in a research note on Monday, December 29th. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $47.14.

About Leonardo DRS

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.