Movers and SHAKERS
After a 3Q Beat, What's Next?
Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q20 Results. Vectrus continued to post strong results even in the face of COVID. Revenue of $352.4 million was down 2.1% y-o-y, but up 4.9% sequentially. COVID impacts reduced 3Q revenue by an estimated $12.9 million. EBITDA margin of 4.8% was the second highest in 10 quarters, even with a 40 bp COVID headwind. GAAP EPS was $0.88 versus $0.67. Adjusted EPS was $0.89 versus $0.71 last year. Third quarter 2020 adjusted EPS was impacted by $0.14 from COVID.
Converging on the $2.5B/7% Goal. Vectrus continues to move forward on its goal of $2.5 billion of revenue and 7% EBITDA margin by 2023. The new contracts highlight the Company's move to diversify its revenue streams, while moving up the margin ladder. The Company is exhibiting its leadership position in the converged infrastructure market, in our view, which should lead to additional opportunities ...
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.