Aerojet Rocketdyne Holdings Inc. beat Wall Street estimates on first-quarter revenue, but missed on earnings.
The El Segundo-based aerospace and defense contractor reported on May 4 adjusted net income of $34 million (43 cents a share) for the quarter ending March 31, compared to adjusted net income of $37 million (44 cents) in the same period from the previous year. Revenue increased 11% from the first quarter of the prior year to $566 million.
Analysts on average expected earnings of 44 cents on revenue of $540 million, according to Thomson Financial Network.
Chief Executive Eileen Drake said that the company continues to get new program contracts, as evidenced by its steady backlog.
The backlog for Aerojet Rocketdyne totaled $6.8 billion, an increase of 6% from $6.4 billion a year ago, with $2.4 billion currently expected to convert to sales in the next 12 months.
The company last month entered into a $216 million cooperative agreement with the Defense Department’s office of manufacturing capability expansion and investment prioritization, which will allow the company to build additional modernized facilities, purchase advanced equipment and automate manufacturing processes at its Arkansas, Alabama and Virginia sites, Drake said.
“These funds will support increased production of rocket propulsion for Javelin, Stinger and the Guided Multiple Launch Rocket System,” Drake said. “It will build on Aerojet’s ongoing investments in modern, efficient facilities and innovative technologies and processes to support the development of next-generation capabilities for tactical missile systems, advanced hypersonics, strategic missile and missile-defense systems.”
Aerojet Rocketdyne has some operations in Chatsworth, where it is making the engines for the Space Launch System, NASA’s heavy lift rocket that will take humans back to the moon this decade.
In a release, the company briefly touched on its proposed merger with L3Harris Technologies Inc., which is based in Melbourne, Florida. On Dec. 17, Aerojet entered into a merger agreement with a subsidiary of L3Harris. The transaction is valued at $4.7 billion and is expected to close this year.