BAE Systems PLC (LSE:BA.) updates on Wednesday, 21 February, with analysts predicting the defence giant has seen strong demand as global tensions mount.
According to Hargreaves Lansdown’s Aarin Chiekrie, revenue should come in around 6% higher for the full year at £24.6 billion
“Given the elevated threat environment, investors are anticipating that demand for BAE’s products and services has remained strong,” Chiekrie said.
Such growth would line up with BAE’s guidance for the figure to increase between 5% and 7% on revenue of £23.3bn in 2022.
Underlying pre-tax earnings are expected to come in 6% to 8% higher from 2022’s £2.5 billion meanwhile, with per share earnings growing 10% to 12% from 55.5p.
According to Chiekrie, it will be BAE’s cash position that investors are more interested in though, given the firm’s £4.4 billion acquisition of Ball Aerospace last week.
“Investors will be keeping an eye out for any updates to the group’s shareholder return plans, with the Ball Aerospace deal likely to put some pressure on cash resources in the near to medium term,” he noted.
That said, the takeover of the instruments and components manufacturer will have investors “cautiously optimistic”, according to Chiekrie, with BAE’s balance sheet likely to remain in good health.
Indeed, BAE reported that it had received some £30 billion worth of orders over the nine months to September.
Billions in funding for the UK, US and Australia’s new nuclear submarines had helped prop the figure up, alongside awards for Bradley fighting vehicles, which have been used in Ukraine.
Shares in the defence giant have climbed over 160% in the past five years, reaching 1,248p on Monday.