Saab (OTCMKTS:SAABY) Announces Quarterly Earnings Results

Saab (OTCMKTS:SAABY) issued its quarterly earnings data on Friday. The company reported $0.13 earnings per share for the quarter, Zacks reports. Saab had a net margin of 8.05% and a return on equity of 15.87%.

Saab Stock Performance

OTCMKTS:SAABY traded up $0.75 during midday trading on Friday, reaching $32.61. The stock had a trading volume of 56,825 shares, compared to its average volume of 140,364. The stock has a market capitalization of $34.91 billion, a P/E ratio of 46.59 and a beta of -0.15. Saab has a 1-year low of $23.29 and a 1-year high of $40.77. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.23 and a quick ratio of 0.82. The firm’s fifty day simple moving average is $31.71 and its 200-day simple moving average is $30.37.

Key Stories Impacting Saab

Here are the key news stories impacting Saab this week:

• Positive Sentiment: Orders more than tripled: Saab reported new orders of 65.8 billion Swedish kronor, compared with 20.9 billion kronor a year earlier. The increase was driven largely by major Ukraine-related Gripen fighter-jet and GlobalEye surveillance-aircraft agreements. Defense giant Saab sees orders triple after Gripen fighter jet deal with Ukraine
• Positive Sentiment: Profit and revenue beat expectations: Saab reported a sharp year-over-year rise in third-quarter sales and operating profit, with operating earnings exceeding analyst forecasts. The company also reported quarterly EPS of $0.13, an 8.05% net margin and a 15.87% return on equity. Defence group Saab’s Q3 operating profit beats expectations
• Positive Sentiment: Ukraine defense demand strengthens the backlog: Reports indicated that the Gripen order helped drive a sharp rise in bookings, improving Saab’s revenue visibility and supporting expectations for continued expansion in its aerospace and defense businesses. Saab’s Q3 orders triple on Ukraine Gripen E and GlobalEye deals
• Neutral Sentiment: Saab Australia launched a space-operations management platform for military users. The product expands Saab’s technology offering, although its near-term financial contribution was not disclosed. Saab Australia launches space operations management platform
• Negative Sentiment: At roughly 45.5 times earnings, SAABY already carries a demanding valuation. Sustaining the stock’s advance may depend on Saab converting the large order surge into profitable deliveries without execution delays or margin pressure.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on SAABY shares. Royal Bank Of Canada upgraded shares of Saab to a “hold” rating in a report on Tuesday, August 11th. Kepler Capital Markets raised shares of Saab from a “strong sell” rating to a “hold” rating in a research report on Monday, July 20th. Pareto Securities raised Saab from a “hold” rating to a “strong-buy” rating in a research report on Thursday, June 25th. Finally, Barclays raised Saab from a “strong sell” rating to a “strong-buy” rating in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy”.

Saab Company Profile

Saab AB is a Sweden-based defense and aerospace company that develops, manufactures and supports products and services for military and civil security customers. Its business includes combat aircraft, weapons systems, sensors, command-and-control solutions, training systems and naval platforms.

The company’s Aeronautics business produces the Gripen fighter aircraft and related systems, while its Surveillance operations provide airborne early-warning, radar, electronic-warfare and sensor technologies, including the GlobalEye system.