Redwire (NYSE:RDW) Posts Earnings Results, Beats Estimates By $0.04 EPS

Redwire (NYSE:RDW) issued its quarterly earnings data on Wednesday. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.04, FiscalAI reports. The firm had revenue of $109.03 million during the quarter, compared to analysts’ expectations of $126.75 million. Redwire had a negative net margin of 52.36% and a negative return on equity of 9.84%.

Redwire Stock Performance

Shares of RDW stock opened at $7.21 on Friday. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.92 and a quick ratio of 3.48. The firm has a 50-day moving average of $9.80 and a 200-day moving average of $11.01. Redwire has a one year low of $4.87 and a one year high of $26.64. The company has a market cap of $1.80 billion, a P/E ratio of -5.72 and a beta of 3.15.

Insiders Place Their Bets

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $11.34, for a total value of $10,539,792.90. Following the completion of the sale, the director owned 147,984 shares in the company, valued at approximately $1,678,138.56. This trade represents a 86.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.79% of the company’s stock.

Key Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported record backlog of $619.7 million, up nearly 75% year over year, and a book-to-bill ratio of 1.73. Gross margins also reached a record, supporting the view that demand remains solid. Redwire Q3 results
• Positive Sentiment: The company won a $20 million contract for additional Otter very-low-Earth-orbit testing and experimentation, adding to its program work. Otter contract announcement
• Neutral Sentiment: Analyst actions were mixed: B. Riley lowered its price target to $14 but kept a Buy rating, while Piper Sandler cut its target to $8 and maintained Neutral. B. Riley rating Piper Sandler rating
• Negative Sentiment: Quarterly revenue of about $109 million fell short of analysts’ roughly $127 million estimate. Although the adjusted loss per share was narrower than expected, management cited shipment delays that are affecting revenue timing and the outlook. Q3 earnings-call highlights

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on RDW shares. Wall Street Zen downgraded Redwire from a “hold” rating to a “sell” rating in a research note on Saturday. Jefferies Financial Group set a $15.00 price objective on Redwire in a research note on Sunday, August 9th. B. Riley Financial dropped their target price on Redwire from $15.00 to $14.00 and set a “buy” rating on the stock in a report on Friday. Piper Sandler dropped their target price on Redwire from $11.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday. Finally, Guggenheim initiated coverage on Redwire in a research report on Monday, September 14th. They set a “neutral” rating on the stock. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $14.28.

Redwire Company Profile

Redwire Corporation (NYSE: RDW) is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its capabilities support spacecraft, space stations, national security missions, and other applications across the space economy.

The company’s offerings include deployable solar arrays, spacecraft platforms, avionics, sensors, communications systems, digital engineering and mission-support services. Redwire also develops robotic systems, in-space manufacturing technologies, payloads, and other solutions designed to enable spacecraft operations and the production of materials in orbit.

Redwire was formed in 2020 through the combination of several space technology businesses backed by AE Industrial Partners and became a publicly traded company in 2021.