V2X, Inc. (VVX)
A Final Quarter for Vectrus
For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q22 Operating Results. V2X reported record second quarter revenue of $498 million, up 6% year-over-year and 9% sequentially. The growth was even more impressive considering the absence of revenues related to the 2021 Pacific Defender exercise and the lack of Afghanistan revenue. We had projected revenue of $460 million. The Company reported GAAP EPS of $0.88 compared to $1.35 in 2Q21. Adjusted EPS was $1.41 versus $1.52. We had projected $1.04 and $1.21, respectively.
Drivers. High OPTEMPO, LOGCAP V momentum, and contract growth on existing programs all drove the top-line growth. Notably, INDOPACOM accounted for 9% of overall revenue, up from 3% in 2Q21. Lower margin early stage contracts as well as M&A and integration costs associated with the Vertex merger negatively impacted margins.…
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.