BAE Systems PLC (LSE:BA.) should unveil a “solid” set of results accompanied by a bullish outlook when it reports full-year results tomorrow, according to Barclays’ analysts.
Barclays believes the UK’s largest defence firm can report double-digit earnings per share growth of 12%, compared to 2021, at 53.7p.
Strong order momentum is also expected after BAE was awarded several contracts last year.
Barclays forecasts the order book will have grown by 45% to around £31bn with its share price target of 1,020p, against a market price of 902p, and a ‘neutral’ rating.
Pre-tax earnings should amount to £2.45bn, while revenue is expected to hit £23bn, up from £2.2bn and £19.5bn respectively, the bank outlined.
BAE received a series of boosts from analysts late last year, backed up by its strong order book and reassurance on UK defence spending driven by Russia’s invasion of Ukraine.
Cyber security and warfare is also a fast-growing area of BAE’s business, with its importance underlined by recent hacks of Royal Mail and the Guardian.