Leonardo DRS (NASDAQ:DRS) Posts Earnings Results, Beats Expectations By $0.05 EPS

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

Leonardo DRS Stock Performance

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

Insider Activity at Leonardo DRS

In related news, EVP Sally Wallace sold 1,300 shares of the stock in a transaction that occurred on 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 legal filing with the SEC, which is available at this link. Also, CFO Michael Dippold sold 10,588 shares of Leonardo DRS stock in a transaction on Monday, January 5th. The stock was 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 $1,589,224. This represents a 19.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.12% of the company’s stock.

Institutional Trading of Leonardo DRS

Several large investors have recently added to or reduced their stakes in the company. State Street Corp increased its holdings in shares of Leonardo DRS by 4.0% during the 4th quarter. State Street Corp now owns 3,988,403 shares of the company’s stock valued at $135,965,000 after purchasing an additional 153,697 shares in the last quarter. AQR Capital Management LLC grew its position in Leonardo DRS by 77.1% during the fourth quarter. AQR Capital Management LLC now owns 2,255,400 shares of the company’s stock valued at $76,887,000 after buying an additional 981,956 shares during the period. Dimensional Fund Advisors LP grew its position in Leonardo DRS by 15.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,995,989 shares of the company’s stock valued at $68,043,000 after buying an additional 267,817 shares during the period. Millennium Management LLC increased its holdings in Leonardo DRS by 6.3% in the fourth quarter. Millennium Management LLC now owns 1,887,797 shares of the company’s stock valued at $64,355,000 after buying an additional 111,612 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Leonardo DRS by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 1,610,691 shares of the company’s stock worth $54,923,000 after acquiring an additional 17,812 shares during the period. Hedge funds and other institutional investors own 18.76% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have commented on DRS shares. Canaccord Genuity Group restated a “buy” rating and set a $50.00 price objective on shares of Leonardo DRS in a report on Thursday, October 30th. Morgan Stanley set a $40.00 price target on Leonardo DRS in a research note on Tuesday, December 16th. Wall Street Zen raised shares of Leonardo DRS from a “hold” rating to a “buy” rating in a research note on Saturday, February 14th. Weiss Ratings reissued a “buy (b-)” rating on shares of Leonardo DRS in a research report on Monday, December 29th. Finally, Truist Financial set a $54.00 price target on shares of Leonardo DRS in a report on Friday, January 9th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Leonardo DRS currently has an average rating of “Moderate Buy” and a consensus price target of $47.14.

Leonardo DRS Company Profile

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.