Shares in BAE Systems (LON:BA) have been little changed in today’s session as the blue-chip defence giant reiterated its full-year outlook. The British defence giant further noted that it expects limited impact from Brexit.
As of 10:26 GMT, BAE Systems’ share price had dipped 0.08 percent to 533.00p, marginally underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.07 percent higher at 7,122.56 points. The group’s shares have lost more than six percent of their value over the past year, as compared with about a 5.4-percent drop in the Footsie.
BAE Systems updates on trading
BAE Systems announced in a statement this morning that its outlook for the current year remained unchanged, with the company expecting underlying earnings per share for 2018 to be in line with the full-year underlying earnings per share for 2017, with some small additional benefit from exchange translation. The FTSE 100 company noted that its interim dividend of nine pence per share will be paid on November 30.
BAE noted that with relatively limited UK-EU trading and movement of EU nationals into and out of the group’s UK businesses, the resulting Brexit near term impacts across the business were likely to be limited.
The update comes after the FTSE 100 group recently confirmed that its £5-billion contract with Qatar has become effective. The contract was first announced in December last year and included the supply of 24 Typhoon aircraft to the Qatar Emiri Air Force along with a bespoke support and training package.
Analysts weigh in on update
The Financial Times quoted Sandy Morris, analyst at Jefferies, as commenting that the defence giant’s update “essentially shows BAE is ploughing its way through a year of transition, likely into a year where momentum builds in some measures”.