Risk-to-Price Commentary: BAE Systems PLC Feb 11
Standard & Poors, February 2011
Abstract
On Feb. 17, the share price of BAE Systems PLC--the U.K.'s biggest defense contractor by revenue--dropped a hefty 4.2% to £3.41 following the company's preliminary results announcement for fiscal year 2010. Although the shares are up 4% since the start of this year, they massively underperformed both the S&P 350 Europe Index and the index's industrials sector by 19% and 33%, respectively, over the past year (see chart 1). Industry analysts named defense spending cuts in the U.K. and slow turnaround of contracts in the U.S. as two major reasons for the share price underperformance and sharp drop on the day of the announcement. Although revenue in 2010 rose 1.8% to £22.4 billion, BAE reported its net income as £1.05...
Companies mentioned in this report are:
- John Deere Capital Corp.
- General Electric Capital Corp.
- Parker-Hannifin Corp.
- Textron Inc.
- Atlas Copco AB
- BAE Systems PLC
- Sandvik AB
- Volvo Treasury AB
- Caterpillar International Finance Ltd.
- Schneider Electric S.A.
- Siemens Financieringsmaatschappij N.V.
- Orkla ASA
- Wendel
- GE Capital European Funding
- Connect M77/GSO PLC
- GE Capital UK Funding
- Heathrow Funding Ltd.
- CIR-Compagnie Industriali Riunite SpA
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- John Deere Capital Corp.
- General Electric Capital Corp.
- Parker-Hannifin Corp.
- Textron Inc.
- Atlas Copco AB
- BAE Systems PLC
- Sandvik AB
- Volvo Treasury AB
- Caterpillar International Finance Ltd.
- Schneider Electric S.A.
- Siemens Financieringsmaatschappij N.V.
- Orkla ASA
- Wendel
- GE Capital European Funding
- Connect M77/GSO PLC
- GE Capital UK Funding
- Heathrow Funding Ltd.
- CIR-Compagnie Industriali Riunite SpA
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW4
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
