Core Viewpoint - BWX Technologies is experiencing significant growth driven by its government operations, particularly in naval nuclear components and microreactors, alongside strong performance in commercial operations and medical sales [1]. Group 1: Financial Performance - Adjusted earnings for FY24 are expected to be $3.20 per share, reflecting a year-over-year increase of 7% [4]. - BWX Technologies anticipates revenues of $2.7 billion for 2024, indicating an 8% year-over-year increase, consistent with Zacks Consensus Estimate [9]. - The company has consistently beaten the Zacks Consensus Estimate for earnings in the past four quarters, with an average surprise of 9.1% [10]. Group 2: Market Position and Growth Drivers - BWX Technologies holds a strong position in the nuclear technology sector, particularly with government contracts for defense and naval applications, which are driving its growth [2]. - The company is expanding its engineering and design work in advanced technologies, especially in the defense market, contributing to top-line growth [6]. - A joint venture led by BWX Technologies received a $3 billion cleanup contract from the U.S. Department of Energy, with a 10-year ordering period [7]. Group 3: Strategic Initiatives - BWX Technologies is focusing on partnerships and acquisitions to enhance its portfolio and global presence, including a partnership with Westinghouse Electric Company for nuclear projects [3]. - The company signed an agreement to acquire L3Harris' Aerojet Ordnance Tennessee business for approximately $100 million, which will enable the development of advanced materials for various applications [8]. Group 4: Stock Performance - BWX Technologies' shares have increased by 47.1% over the past year, outperforming the broader Zacks Computer and Technology sector's return of 32.4% [13]. - The stock is currently trading at a forward 12-month Price/Sales ratio of 3.63X, compared to the industry's 2.49X, reflecting a premium justified by strong growth prospects [5].

Core Viewpoint - Nidec Corp. (NJDCY) is currently viewed as a better value opportunity compared to BWX Technologies (BWXT) based on various valuation metrics and earnings outlooks [1]. Valuation Metrics - Both NJDCY and BWXT have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]. - NJDCY has a forward P/E ratio of 15.86, significantly lower than BWXT's forward P/E of 37.96, suggesting NJDCY is undervalued relative to BWXT [5]. - The PEG ratio for NJDCY is 0.47, indicating a favorable valuation when considering expected earnings growth, while BWXT's PEG ratio is much higher at 4.11 [5]. - NJDCY's P/B ratio stands at 4.03, compared to BWXT's P/B of 10.59, further supporting the notion that NJDCY is the more attractive value option [6]. Value Grades - NJDCY has a Value grade of B, while BWXT has a Value grade of D, highlighting the relative undervaluation of NJDCY compared to BWXT [7].

Core Insights - Nidec Corp. (NJDCY) and BWX Technologies (BWXT) are both attractive options for value investors, with a current Zacks Rank of 2 (Buy) indicating positive earnings estimate revisions for both companies [3][7] Valuation Metrics - NJDCY has a forward P/E ratio of 15.65, significantly lower than BWXT's forward P/E of 40.96, suggesting NJDCY may be undervalued [5] - The PEG ratio for NJDCY is 0.47, indicating a favorable valuation relative to its expected earnings growth, while BWXT's PEG ratio is much higher at 4.44 [5] - NJDCY's P/B ratio stands at 3.97, compared to BWXT's P/B of 11.43, further supporting the notion that NJDCY is the more attractive value option [6] Value Grades - Based on various valuation metrics, NJDCY has a Value grade of B, while BWXT has a Value grade of D, indicating that NJDCY is currently the superior value investment [7]

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has BWX Technologies (BWXT) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.BWX Technologies is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Secto ...

BWX Technologies (BWXT) shares have soared 67.1% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 28.8%. It has also outperformed Zacks Electronics - Miscellaneous Components industry and competitors, including ESAB Corporation (ESAB) , Baker Hughes Company (BKR) and Symbotic Inc. (SYM) . Over the same time frame, shares of ESAB and Baker Hughes have soared 46% and 26.3%, respectively. Shares of Symbotic have plunged 41.7% year to date.This outperformance can be firml ...

BWX Technologies Inc (NYSE:BWXT) stock scored a price-target hike from BofA Global Research to $160 from $115 earlier today. The equity was last seen up 0.6% to trade at $132.88, and earlier hit a fresh record high of $136.31.On the charts, support at the 40-day moving average has been in place since September, and captured the shares' early-November pullback. On track for its sixth-straight daily win, the equity is up 72.9% year to date.There's still plenty of room for optimism amongst the brokerage bunch ...

My optimistic angle on BWX Technologies (NYSE: BWXT ) is drawn from Q3 '24 solid revenue increase by 14% compared to an 11% increase in Q2’24. The government operations revenue in Q3 '24 grew by 17% compared toFirst Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial and technology, enabling me to uncover overl ...

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $672 million, representing a 14% organic growth year-over-year [20] - Adjusted EBITDA increased by 19% to $127 million, driven by strong Government Operations growth [20] - Adjusted earnings per share rose 24% to $0.83 compared to $0.67 in the prior year quarter [22] - Free cash flow for the quarter was a use of $8 million, but the company reaffirmed its full year free cash flow outlook of $225 million to $250 million [24] Business Line Data and Key Metrics Changes - Government Operations revenue grew 17% to $560 million, with adjusted EBITDA increasing by 18% to $117 million [26] - Commercial Operations saw modest revenue growth, with adjusted EBITDA slightly down to $13.5 million from $13.9 million in the previous year [27] - The Medical segment is expected to grow about 25% year-to-date, driven by diagnostics and contract drug manufacturing [17] Market Data and Key Metrics Changes - The company anticipates mid- to high single-digit revenue, EBITDA, and earnings per share growth for 2025 compared to 2024 [5][29] - The demand for nuclear power is increasing, with significant investments from major companies like Microsoft, Amazon, and Google [13] Company Strategy and Development Direction - The acquisition of A.O.T. is seen as a strategic extension of the company's special materials portfolio, enhancing capabilities in defense applications [9][10] - The company aims to complement organic growth with strategic M&A opportunities to maximize exposure to government and commercial nuclear markets [11] - Focus remains on operational excellence and providing high-quality nuclear solutions to support critical government missions [12] Management's Comments on Operating Environment and Future Outlook - Management raised the 2024 adjusted earnings per share guidance to about $3.20, citing strong year-to-date performance despite weather-related challenges [4] - The company is optimistic about continued growth in Government Operations and accelerating growth in Commercial Operations for 2025 [5] - Management emphasized the importance of clean, reliable baseload nuclear power in light of climate change and increasing electricity demand [32] Other Important Information - The company is actively working on several contracts related to national security uranium enrichment and advanced nuclear fuel processing [8][9] - The impact of Hurricane Helene resulted in a temporary shutdown of the navy fuel processing facility, affecting working capital [24] Q&A Session Summary Question: Impact of supply chain issues at shipyards - Management indicated that they have not experienced significant supply chain pressures and feel well-equipped to meet customer demands [35] Question: Clarification on Government Operations growth - Management attributed strong growth to good execution across various programs, particularly in Advanced Technologies [36] Question: Competitive advantages in the nuclear space - Management highlighted their leadership in advanced nuclear fuels and large component manufacturing capabilities as key differentiators [38] Question: Timeline for growth in isotopes, microreactors, and SMRs - Management expects near-term growth from nuclear medicine and small modular reactors, with microreactors contributing in the mid-term [39] Question: Sequential decline in EPS from Q3 to Q4 - Management explained that the decline is due to various factors, including hurricane-related disruptions and typical seasonal dynamics [43][44] Question: Navy pricing agreement and future margins - Management expressed hope that the new pricing agreement would help maintain EBITDA margins in the Government Operations segment [48] Question: Potential for sole source supplier in enrichment market - Management confirmed they were the sole awardee for a contract related to enrichment capabilities, indicating a strong position in that market [78]

BWX Technologies (BWXT) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.79%. A quarter ago, it was expected that this supplier of nuclear fuel and components to the U.S. government would post earnings of $0.76 per share when it actually produced earnings of $0.82, delivering a surpr ...

Revenue and Income Growth - Consolidated revenues increased by 13.9%, or $82.0 million, to $672.0 million for the three months ended September 30, 2024, compared to $590.0 million for the same period in 2023[88]. - For the nine months ended September 30, 2024, consolidated revenues increased by 10.5%, or $186.6 million, to $1,957.4 million compared to $1,770.8 million for the same period in 2023[90]. - Operating income for the three months ended September 30, 2024, increased by $11.2 million to $96.6 million, with Government Operations contributing an increase of $16.0 million[89]. - Operating income for the nine months ended September 30, 2024, increased by $28.5 million to $288.3 million, with Government Operations and Commercial Operations segments contributing increases of $21.4 million and $10.3 million, respectively[91]. - Operating income rose by $21.4 million to $279.8 million for the nine months ended September 30, 2024, compared to $258.4 million for the same period in 2023[96]. Segment Performance - Government Operations segment revenues rose by $82.2 million, reaching $560.1 million, driven by higher volume in nuclear components for U.S. Government programs and long-lead material procurements[93]. - The Government Operations segment's operating income margin was 18.1% for the three months ended September 30, 2024, compared to 17.9% for the same period in 2023[92]. - Commercial Operations segment revenues increased by $29.4 million for the nine months ended September 30, 2024, reaching $371.6 million[90]. - The increase in Government Operations revenues was partially offset by a decrease in revenues associated with downblending operations[93]. Expenses and Cash Flow - Unallocated Corporate expenses increased by $2.4 million for the three months ended September 30, 2024, compared to the same period in the prior year[89]. - Unallocated corporate expenses increased by $3.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[102]. - Net cash provided by operating activities decreased by $10.4 million to $131.5 million in the nine months ended September 30, 2024, compared to $141.9 million in the same period of 2023[136]. - Net cash used in financing activities increased by $47.7 million to $69.9 million in the nine months ended September 30, 2024, compared to $22.2 million in the same period of 2023[138]. Backlog and Future Revenue - Total backlog as of September 30, 2024, was $3,380.7 million, down from $3,998 million as of December 31, 2023[109]. - The company expects to recognize approximately 48% of the revenue associated with its backlog by the end of 2025[110]. Debt and Financing - As of September 30, 2024, borrowings under the Term Loan totaled $239.1 million, with $548.6 million available under the Revolving Credit Facility[119]. - The weighted average interest rate on outstanding borrowings under the Credit Facility was 6.31% as of September 30, 2024[119]. - The company issued $400 million aggregate principal amount of 4.125% senior notes due 2028, maturing on June 30, 2028[122]. - Interest on the senior notes due 2028 is payable semi-annually at a rate of 4.125% per annum[123]. Pension and Working Capital - As of September 30, 2024, the company had underfunded defined benefit pension and postretirement benefit plans with obligations totaling approximately $96.2 million[132]. - The company's working capital increased by $102.7 million to $545.5 million as of September 30, 2024, from $442.8 million at December 31, 2023[135]. Acquisition Plans - The company announced its intention to acquire Aerojet Ordinance Tennessee, Inc., expecting a significant cash investment during the fourth quarter of 2024[141]. Investments and Cash Equivalents - The company had long-term investments with a fair value of $10.7 million, primarily consisting of corporate bonds and mutual funds[140]. - As of September 30, 2024, letters of credit issued and outstanding under the bilateral letter of credit facility totaled approximately $35.6 million[131].