Tuesday, December 08, 2020

DLH Holdings Corp. (DLHC)
Covid Continues to Impact Revenues; But Well Positioned Going Forward

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q20 Results. Revenues were $50.7 million, down from $54.2 million a year ago. Revenue was negatively impacted by COVID with deferrals in certain programs and a reduction in pass-through revenue. We had projected $54 million and consensus was $55.2 million. EPS was $0.10, down from $0.12 y-o-y, although 4Q20 results were impacted by $930,000 of acquisition costs, which reduced 4Q20 EPS by $0.05. We were at $0.14 and consensus was $0.15. EBITDA was $4.4 million ($5.3 million adjusted) versus $5.3 million in the prior year period.

Growing Opportunity Set.  With an expanded portfolio of mission-critical related services across multiple government agencies, DLH is well positioned to capitalize on expected growth in its key focus areas such as veterans health, public health, and life sciences. The IBA and S3 acquisitions have expanded the Company's opportunity set and ability to capture additional share at existing clients ...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.