Saab (OTCMKTS:SAABY) Issues Earnings Results

Saab (OTCMKTS:SAABY) issued its quarterly earnings results on Friday. The company reported $0.13 EPS for the quarter, Zacks reports. Saab had a return on equity of 15.87% and a net margin of 8.05%.

Saab Trading Up 2.4%

Saab stock traded up $0.75 during trading hours on Friday, reaching $32.61. 56,825 shares of the company’s stock traded hands, compared to its average volume of 140,364. The firm has a market capitalization of $34.91 billion, a price-to-earnings ratio of 46.59 and a beta of -0.15. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.82 and a current ratio of 1.23. Saab has a fifty-two week low of $23.29 and a fifty-two week high of $40.77. The firm’s 50 day moving average is $31.71 and its 200-day moving average is $30.37.

Saab News Summary

Here are the key news stories impacting Saab this week:

• Positive Sentiment: Orders more than tripled: Saab reported new orders of 65.8 billion Swedish kronor, compared with 20.9 billion kronor a year earlier. The increase was driven largely by major Ukraine-related Gripen fighter-jet and GlobalEye surveillance-aircraft agreements. Defense giant Saab sees orders triple after Gripen fighter jet deal with Ukraine
• Positive Sentiment: Profit and revenue beat expectations: Saab reported a sharp year-over-year rise in third-quarter sales and operating profit, with operating earnings exceeding analyst forecasts. The company also reported quarterly EPS of $0.13, an 8.05% net margin and a 15.87% return on equity. Defence group Saab’s Q3 operating profit beats expectations
• Positive Sentiment: Ukraine defense demand strengthens the backlog: Reports indicated that the Gripen order helped drive a sharp rise in bookings, improving Saab’s revenue visibility and supporting expectations for continued expansion in its aerospace and defense businesses. Saab’s Q3 orders triple on Ukraine Gripen E and GlobalEye deals
• Neutral Sentiment: Saab Australia launched a space-operations management platform for military users. The product expands Saab’s technology offering, although its near-term financial contribution was not disclosed. Saab Australia launches space operations management platform
• Negative Sentiment: At roughly 45.5 times earnings, SAABY already carries a demanding valuation. Sustaining the stock’s advance may depend on Saab converting the large order surge into profitable deliveries without execution delays or margin pressure.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on SAABY. Royal Bank Of Canada raised Saab to a “hold” rating in a research report on Tuesday, August 11th. Barclays upgraded Saab from a “strong sell” rating to a “strong-buy” rating in a research note on Monday, August 10th. Kepler Capital Markets raised shares of Saab from a “strong sell” rating to a “hold” rating in a report on Monday, July 20th. Finally, Pareto Securities raised Saab from a “hold” rating to a “strong-buy” rating in a report on Thursday, June 25th. Two research analysts have rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Saab presently has an average rating of “Moderate Buy”.

About Saab

Saab AB is a Sweden-based defense and aerospace company that develops, manufactures and supports products and services for military and civil security customers. Its business includes combat aircraft, weapons systems, sensors, command-and-control solutions, training systems and naval platforms.

The company’s Aeronautics business produces the Gripen fighter aircraft and related systems, while its Surveillance operations provide airborne early-warning, radar, electronic-warfare and sensor technologies, including the GlobalEye system.