Key Takeaways:
(Bloomberg) -- BWX Technologies Inc. (NYSE:BWXT) rose in early trading after the nuclear components supplier reported first-quarter results that topped analyst estimates and raised its full-year earnings forecast.
"Investment in global nuclear markets is accelerating, and demand for BWXT’s innovative nuclear solutions is growing rapidly,” Rex D. Geveden, president and chief executive officer, said in a statement.
The company reported first-quarter adjusted earnings of $1.12 per share on revenue of $860.2 million. Wall Street had expected earnings of $0.93 per share on $837.3 million in revenue. The results represent a 26.1% year-on-year increase in sales.
The strong performance prompted BWX to lift its full-year adjusted EPS guidance to a new range of $4.60 to $4.75, up from a prior $4.55 to $4.70. The company’s backlog grew to a record $8.7 billion, up 77.3% from a year ago, signaling strong future demand.
Despite the strong report, the stock’s initial reaction was muted, falling in after-hours trading before recovering. Through Monday, BWX stock had gained about 25% year-to-date and more than 90% over the past 12 months, leaving it trading at a high valuation of roughly 45 times forward earnings.
The guidance raise suggests management is confident that demand for its nuclear components for government and commercial use will continue its upward trend. Investors will be watching the company’s ability to convert its massive backlog into revenue and maintain profitability amid rising costs.
This article is for informational purposes only and does not constitute investment advice.
