Why Aerojet Rocketdyne (AJRD) Shares Are Sliding Today

Aerojet Rocketdyne Holdings Inc AJRD reported second-quarter net sales declined 5.1% year-over-year to $528.5 million, missing the consensus of $568.7 million.
The company attributed lower net sales to a decline in the Standard Missile, RS-25, and RS-68 programs, partially offset by an increase in the Next Generation Interceptor (NGI) program.
EPS was $0.20, below the consensus of $0.48.
Operating income fell by 62% Y/Y to $28.2 million, and the margin declined by 800 bps to 5.3%.
Adjusted EBITDAP was $41.5 million (-52.1% Y/Y), and the margin was 7.9%, down by 770 bps.
AJRD’s net cash used by operating activities year-to-date totaled $(108.8) million, compared to cash provided of $20.2 million a year ago. Free cash outflow was $(120.3) million.
As of June 30, 2022, the backlog totaled $6.9 billion (+1.5% Y/Y). The company expects to recognize ~34%, or $2.3 billion, of the remaining performance obligations as sales over the next twelve months.
Aerojet Rocketdyne held cash and equivalents of $572.4 million as of June 30, 2022.
Price Action: AJRD shares are trading lower by 8.59% at $39.94 during the market session on Monday.

Aerojet Rocketdyne Shares Slide On Missing Q2 Street Expectations