Aerospace and defense company BWX (NYSE:BWXT) will be reporting results tomorrow after market close. Here’s what to look for.

BWX beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $746.3 million, up 2.9% year on year. It was a strong quarter for the company, with full-year revenue guidance exceeding analysts’ expectations.

Is BWX a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting BWX’s revenue to grow 7.4% year on year to $648.9 million, improving from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BWX has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.3% on average.

Looking at BWX’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 1.5%, and Lockheed Martin reported revenues up 4.5%, topping estimates by 1.1%. CACI traded up 7.9% following the results while Lockheed Martin was also up 1.1%.

Read our full analysis of CACI’s results here and Lockheed Martin’s results here.

There has been positive sentiment among investors in the defense contractors segment, with share prices up 13% on average over the last month. BWX is up 25.2% during the same time and is heading into earnings with an average analyst price target of $134.73 (compared to the current share price of $112.75).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.