Friday, February 7, 2020

DLH Holdings Corp. (DLHC)

Post Call Update; Positive Outlook, Although Waiting Outcome of 3 Major Contracts

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.

1Q20. Basic blocking and tackling in the quarter. S3 ERP integration complete. Continue to see active bid pipeline. Legacy business growing, but modestly. S3 revenue down sequentially due to normal quarterly fluctuations. Management remains optimistic about the current business environment.

Major Contract Updates.  No new news on the two VA contracts and the HHS contract. We expect the pharmacy services contract to be decided this year, although it is unlikely to have any material impact on the Company's results. The logistics part of the VA contract likely will follow the pharmacy award. HHS has yet to send out a RFP but is expected to...

This 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.