Investing.com -- London-listed shares in BAE Systems (LON:BAES) dipped in early trading on Wednesday after the submarine and combat vehicle maker said it expects to see earnings growth slow in 2024.
The British company, whose clients include the U.S. and Saudi Arabia, has recently been boosted by countries spending more on defense, particularly in the wake of the outbreak of hostilities in Ukraine. BAE's share price has surged by more than 33% over the past year.
In a statement, Chief Executive Charles Woodburn said the company remains "well-positioned" for sustained growth in the coming years thanks in part to "record order intake."
Underlying earnings per share are expected to expand by 6% to 8% in the year ended on Dec. 31. However, this pace would imply a deceleration from 2023, when the measure rose by 14% to 63.2 pence.
Analysts at UBS noted that the guidance was impacted by integration costs related to BAE Systems' $5.55 billion acquisition of U.S.-based Ball (NYSE:BALL) Aerospace, which was completed earlier this month. BAE has said the move will bolster its product portfolio with additional capabilities to design, build and operate satellites.