BWX Technologies to Report Q1 Earnings: What's in Store for the Stock?

Core Viewpoint - BWX Technologies, Inc. (BWXT) is expected to report strong revenue growth in the first quarter of 2025, driven by increased manufacturing volume and strategic acquisitions, despite anticipated declines in earnings per share due to rising costs and tax rate changes [1][6][7][8]. Group 1: Government Operations Segment - BWXT's Government Operations segment is likely to see revenue growth due to higher manufacturing volumes of nuclear components for U.S. Government programs and increased design and engineering work in the defense market [1][2]. - The acquisition of Aerojet Ordnance Tennessee, Inc. is expected to provide positive synergies, further boosting revenues in this segment [2]. - The Zacks Consensus Estimate for this segment's first-quarter sales is $526.1 million, reflecting an 8% increase from the previous year [3][6]. Group 2: Commercial Operations Segment - The Commercial Operations segment is anticipated to benefit from higher sales of nuclear components and medical radioisotopes, driven by strong demand in the commercial nuclear power and medical markets [4]. - The Zacks Consensus Estimate for this segment's first-quarter sales is $134.6 million, indicating a 15% increase from the prior year [5][6]. Group 3: Overall Financial Expectations - BWXT's overall first-quarter sales are estimated at $657.2 million, representing an 8.8% increase year-over-year [6]. - The expected earnings per share for the first quarter is 73 cents, which indicates a year-over-year decline of 4% [8]. - Rising labor costs and a shift towards lower-margin programs are likely to negatively impact operating margins and overall bottom-line performance [7].