We review the coverage universe in our Pro service. Subscribers can read the note here. Winning calls to date include AJRD, DT, MAXR, SAIC and SPCE. If you're interested in subscribing to a Cestrian Capital Research service, check our main site or email us at email@example.com.
Aerojet Rocketdyne (AJRD) has never been in better shape. Ever. Its stock is approaching a key level. Our Pro subscriber update is now live - Pro subscribers can access the note here.
Aerojet Rocketdyne (AJRD) continues to grow its backlog at a rapid clip; revenue growth is stepping up; cashflow has exceeded EBITDA in the last twelve months; and the company is now in a net cash position. The stock remains undervalued in our view. Our August Update for Pro subscribers is now live. You can find it here. Not a subscriber? Purchase the update on a one-time basis here.
We have a number of notes coming your way soon if you're a Cestrian Pro subscriber. Watch out for update notes on Aerojet Rocketdyne (AJRD) and Virgin Galactic (SPCE). We touch on these topics below. We also have new-name coverage of Maxar Technologies coming to our Pro service soon.
Shocker. Fundamentals Do Matter. Momentarily.
Aerojet Rocketdyne delivered a very strong Q2 report after the close last night. This was off the back of the stock being handed a severe drubbing in recent weeks. (See our AJRD Q2 Earnings Preview for details). The stock closed up 16% today - a result, it seems, of old-fashioned things like growth in backlog, revenue, earnings and cashflow. A victory for reason over sentiment, stimulus and the various other horsemen riding to end the Enlightenment.
Below we walk you through our take on the quarter.
Backlog Up Bigly, Stock Down Biggerly.
Aerojet Rocketdyne (AJRD) stock has taken a drubbing of late. Down some 16% since the start of the year, despite a very strong start for the name in Q1, we confess to being rather puzzled as to this state of affairs. The company is inexpensively valued on fundamentals, has a large and growing backlog including a recent monster NASA contract, and is geared to a number of key growth themes across space and defense. Here we consider how Q2 numbers could play out.