Home » Stocks & Shares » BAE Systems share price outperforms after interims

BAE Systems share price outperforms after interims

Tsveta van Son
  • July 31st, 14:23
  • Last Updated: September 16th, 17:29

BAE Systems’ (LON:BA) share price has climbed higher in London this Wednesday as the defence contractor said that its earnings had climbed higher in the first half of the year. The update comes after the company recently signalled a one-off tax-related non-cash benefit to its earnings per share.

As of 13:51 BST, BAE Systems’ share price had added 1.36 percent to 550.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.88 percent lower at 7,579.22 points. The group’s shares have given up more than 15 percent of their value over the past year, as compared with about a two-percent fall in the Footsie.

BAE Systems posts interim

BAE Systems announced in a statement today that its underlying EBITDA had climbed to £999 million in the six months to June 30, from £874 million in the prior-year period, while its sales surged to £9.4 billion, from £8.8 billion a year ago. The company lifted its payout to shareholders to 9.4p per share, from 9.0p.

“The first half performance underpins our guidance for the full year with improvements being made on a number of operational fronts,” the group’s chief executive Charles Woodburn commented in the statement. “Our priority is to deliver consistent and strong operational performance for our customers and shareholders to enable us to meet our growth expectations over the medium term.”

Going forward, BAE expects to deliver underlying earnings per share, excluding the one-off tax benefit, to grow by mid-single digit compared to the full-year underlying earnings per share in 2018 of 42.9p.

Analysts on FTSE 100 group

Deutsche Bank reaffirmed the British defence contractor as a ‘buy’ today, without specifying a target on the BAE Systems share price, while earlier in the week, UBS reaffirmed the company as a ‘neutral’. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average valuation of 608p.

About the author

Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.