Lynchburg, Va.-based BWX Technologies hauled in $520 million in revenue during the third quarter, which ended Sept. 30, which is up 3% from the $506 million it took in during the same period a year ago, according to a Monday earnings release.
Its net income for the quarter dipped a bit, however, as BWX Technologies (BWXT) took in $73.2 million, or $0.76 per share, compared with $74.8 million, or $0.78 per diluted share, in the same period in 2019.
Despite the COVID-19 pandemic, “BWXT delivered solid results in the third quarter, exhibiting consistent underlying business performance across all segments and indicating the stability of our end markets even under challenging economic conditions,” said the company’s president and CEO, Rex Geveden in the release.
As a result, BWXT increased its estimated earnings per share guidance, from $2.80 to a range of between $2.90 and $3.00 for 2020. That is based on non-generally accepted accounting procedures, according to the release.
Revenues and operating incomes were up or flat for two of the company’s three nuclear business lines. The flagship Nuclear Operations Group, which includes BWXT’s naval business and uranium downblending work for the National Nuclear Security Administration, suffered lower numbers for both revenue and income. Revenue dropped from $394 million to less than $387 million. Segment operating income was down from about $94 million to $68 million.
Meanwhile, the Nuclear Services Group, which includes the company’s contracts with the Department of Energy Office of Environmental Management, was basically flat on the revenue side, coming in at about $500,000 more than a year ago: a little under $34 million, in both quarters. The segment’s operating income rose from $5.5 million to $7.5 million.
Last, revenue at BWXT Nuclear Power Group, the commercial side of the house, increased from $84 million to $108 million year over year, while its operating income increased from $9 million to $29 million in the most recent quarter. The Nuclear Power Group benefited from COVID-19 economic relief in Canada, according to the release.
At the deadline for Weapons Complex Morning Briefing, Geveden was discussing the results in a conference call with Wall Street analysts.
