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Qinetiq group (LSE: QQ.) Sholed FTSE 250 Investors with a profit warning on March 17. But is he ready to bounce back?
In a trade update, a defense and security specialist reduced his annual ecological income increased forecast for 2025 to about 2%. In January, in the quarter, the quarter told us to expect “High increase with a single -digit increase in organic revenues“.
This sweetened a bit of revenue, announcing “Extension of our retirement program up to 200 million GBP in the next two years“.
Up and down
The price of Qinetiq shares returned to … about where it was before it increased within a week or two before the update. Despite a bit of variability, it has continued to boost by 10% in the last 12 months.
The Council clearly believes that his own shares are now worth buying as a good apply of the surplus of cash. I think that long -term investors can benefit from considering the same.
Hard American business
This year, the company expects a fee for impairment of about 140 million pounds “”Due to the market background and operating results in the USA“And there should be one -off fees that add up to about 35 million GBP, again due to operations in the USA.
All this conducts analysts to predict a loss of action this year. But in addition, we can look at the price -profit ratio (P/E) of 14.5 in 2026 and falling.
There are clear dangers. But people considering the purchase of long -term growth may perceive a decrease in share prices as a possible occasion.
More of the same?
I stick to the same general sector for my second choice, Chemring group (LSE: Chg). The company that specializes in lure technology to protect against bullets was not really nervous of war threats.
Actions fell at the back of the FY results in December. This is, although we noticed an 8% boost in revenues and 13% dividend growth. However, profit per share (EPS) dropped by 4%.
Net debt increased to 52.8 million GBP from 14.4 ma. Despite this, a year is a compact time for such a long -term business. And Chemring continued to report a net debt to EBITDA by only 0.56 times, which seems fine.
The price of the shares began poorly 2025. But from February it appeared again. We look at 17% of profits from year to day in 2025.
Uncertain times
Chemring is in the face of significant the same uncertainty and risk as Qinetiq. But it has the same attraction for me-a long-term growth prospects.
In this case, the broker forecasts show that EPS climbs 75% in 2024–2027. This may be enough to spoil P/E under 14 years of age. And without compact -term obstacles that Qinetiq faces this year.
In results, CEO Michael Words he said “The prospects of global defense markets are increasingly solid, and in the next decade a strong growth was expected“And he spoke about”The ambition of increasing the annual revenue of the Group to c. 1 billion £ to 2030.“.
Certainly it must be FTSE 250 growth.