We just heard from some of the world's largest aerospace and defense companies.
These giants posted strong quarters — revenues were solid, profits held up, and their backlogs are looking stronger than ever. Demand isn’t the problem at all. From commercial aviation to defense contracts, the pipeline is booming.
But there’s one big problem…
Tariffs.
New and escalating trade tensions are casting a long shadow. These companies are facing rising costs due to tariffs on key materials like aluminum, steel, and advanced components sourced from abroad. And Wall Street has noticed.
Despite solid fundamentals, the market reaction has been lukewarm — or even negative — because investors are worried about how these tariffs will eat into future margins.
So what else did we learn from their reports? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Equifax $EFX had the best reaction score and reported a double beat.
The company reported revenues of $1.44B, versus the $1.42B estimate, and earnings per share of $1.53, versus the $1.41 estimate.
Northrop Grumman $NOC had the worst reaction score and reported mixed results.
The company reported revenues of $9.47B, versus the $9.92B estimate, and earnings per share of $6.06, versus the $5.24 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
GE has been rewarded for 6 of its last 8 earnings reports:
GE Aerospace rallied 6% after this earnings report, and here's why:
Operating profit reached $2.1B, and it's growing by 38% year-over-year.
They announced a plan to return $8B to shareholders this year through dividends and stock repurchases.
The management team reiterated its positive 2025 guidance across the board.
This company is crushing it!
The stock chart paints a bullish picture, too.
The price is in the process of flipping a shelf of former highs from a decade ago into support. We expect this level to hold.
If GE is above 155, the path of least resistance is higher for the foreseeable future.
RTX got crushed after a double beat:
RTX Corp. fell nearly 10% after this earnings report, and here's why:
Tariffs are expected to affect their profitability this year significantly.
The management team didn't provide much guidance about mitigating the tariff risk, adding to the market's uncertainty.
They still have a massive backlog of $217B, including $125B of commercial and $92B of defense.
There aren't many things the market hates more than uncertainty, and there's tremendous uncertainty here.
Price is hanging on for dear life at a key level of interest. Things will likely worsen if the bears take control and resolve this distribution pattern.
If RTX is below 114, the path of least resistance will shift from sideways to lower.
Thank you for reading.
- The Beat Report Team
PS: Kenny Glick is going live to show you how he finds the fastest-moving stocks every day. And when we say fastest moving stocks - we mean… Kenny doesn’t CARE AT ALL about the ticker, about the fundamentals, about the dividend… he only watches one thing that ALERTS him that a stock is in play.
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