Redwire (NYSE:RDW) Posts Quarterly Earnings Results, Beats Expectations 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, topping analysts’ consensus estimates of ($0.10) by $0.04, FiscalAI reports. Redwire had a negative net margin of 57.26% and a negative return on equity of 11.02%. The firm had revenue of $109.03 million for the quarter, compared to the consensus estimate of $126.75 million.

Redwire Stock Up 16.4%

NYSE RDW opened at $7.21 on Friday. The stock has a 50 day moving average price of $9.80 and a 200-day moving average price of $11.01. Redwire has a one year low of $4.87 and a one year high of $26.64. The company has a current ratio of 3.92, a quick ratio of 3.48 and a debt-to-equity ratio of 0.03.

More 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 brokerages have recently weighed in on RDW. B. Riley Financial dropped their price objective on shares of Redwire from $15.00 to $14.00 and set a “buy” rating for the company in a research note on Friday. Guggenheim initiated coverage on shares of Redwire in a research note on Monday, September 14th. They set a “neutral” rating on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Redwire in a research note on Thursday, October 15th. Canaccord Genuity Group lowered their price objective on Redwire from $15.00 to $13.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Piper Sandler dropped their price target on shares of Redwire from $11.00 to $8.00 and set a “neutral” rating for the company in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Redwire presently has an average rating of “Hold” and a consensus target price of $14.28.

Insider Activity at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the company’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $11.34, for a total transaction of $10,539,792.90. Following the transaction, the director owned 147,984 shares in the company, valued at approximately $1,678,138.56. This represents a 86.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.79% of the company’s stock.

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.