Will RDW's Q1 2025 EPS beat forecasts?
4/8/2025 08:42pm
**Redwire's Q1 2025 EPS is likely to miss forecasts.** Here's a detailed analysis:
1. **Current Estimates**: The estimated EPS for Redwire in Q1 2025 is -$0.13. This indicates a potential loss for the quarter.
2. **Historical Performance**: In Q1 2024, Redwire reported a net loss of $8.1 million, which was an increase from the previous year's net loss of $7.3 million. This trend suggests that the company may continue to face challenges in achieving profitability in the short term.
3. **Analyst Opinions**: Several analysts have lowered their earnings estimates for Redwire, with Roth Capital forecasting an EPS of -$0.24 for Q1 2025, which is more negative than the current estimate. This indicates a bearish sentiment among analysts regarding Redwire's ability to beat EPS forecasts.
4. **Revenue Outlook**: Despite the negative EPS outlook, Redwire's revenue forecast for Q1 2025 is $80.2 million, which is a substantial amount. However, this needs to be considered in the context of the company's overall financial health and operational performance.
5. **Strategic Developments**: Redwire has recently announced the acquisition of Edge Autonomy, which is expected to enhance its position in the space economy. While this is a positive long-term development, it may come with integration challenges and costs that could impact short-term financials.
In conclusion, given the current estimates, historical performance, analyst opinions, and the strategic developments, it is more likely that Redwire's Q1 2025 EPS will not beat forecasts. The company is facing challenges in achieving profitability, and while there is a substantial revenue forecast, the focus should be on ensuring that the company can manage its costs and improve its operational efficiency to potentially turn the corner towards profitability.