FTSE 250-listed Babcock International Group PLC (GB:BAB) will report its fourth quarter and full-year earnings report for 2023 this week on July 20. In general, analysts have assigned a Strong Buy rating to the company’s stock, indicating considerable upside potential in the share price.
Babcock International is a globally operating defense company with a strategic focus on countries such as the UK, Australasia, Canada, France, and South Africa. It offers a diverse range of product and service solutions for enhancing the countries’ defense capabilities and safeguarding their critical assets.
The TipRanks Earnings Calendar is a valuable tool that offers users up-to-date information on earnings within different markets. It enables them to stay informed about forthcoming earnings announcements from various companies, providing essential details such as the date, projected EPS, reported EPS, and more.
The Expectations
On TipRanks, the Consensus EPS forecast for the fourth quarter is £0.25 per share, as compared to £0.20 per share reported in the same quarter last year. The projected sales for Q4 are around £1.83 billion, indicating a decrease compared to the sales of £2.14 billion in the previous quarter.
According to the company’s update, the cash flow for the year has exceeded expectations, primarily due to its operational performance and disposal program. Additionally, the underlying profitability aligns with the projected expectations.
With a stronger-than-anticipated cash performance and ongoing reduction of debt on the balance sheet, the company anticipates reinstating a dividend in fiscal year 2024.
Analysts maintain a positive outlook on the company’s prospects and its stock, considering the rise in defense spending worldwide. This has resulted in increased military budgets, particularly in Europe and Asia.
Is Babcock a Buy?
Based on the analyst consensus from TipRanks, BAB stock has received a Strong Buy rating, supported by four Buy recommendations.
Analysts have set an average target price of 443.75p, indicating a projected growth of 48.8% from the current level. It’s worth noting that the stock has experienced a decline of 6.5% over the past year.
Conclusion
Utilizing TipRanks’ earnings calendar to stay updated on upcoming earnings announcements could be beneficial for making informed investment decisions.
As investors eagerly await Babcock’s 2023 earnings report, analysts remain bullish on the stock, rating it a Strong Buy.
