Infrastructure and defense services provider Parsons (NYSE: PSN) will be reporting earnings this Wednesday morning. Here’s what to look for.
Parsons missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $1.55 billion, up 1.2% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ backlog estimates.
Is Parsons a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Parsons’s revenue to decline 4.3% year on year to $1.60 billion, a reversal from the 23.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 9 analysts). Parsons has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Parsons’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BWX delivered year-on-year revenue growth of 12.1%, beating analysts’ expectations by 7.2%, and General Dynamics reported revenues up 8.9%, topping estimates by 5.7%. General Dynamics traded up 5.7% following the results.
Read our full analysis of BWX’s results here and General Dynamics’s results here.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Parsons’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $83.10 (compared to the current share price of $74.60).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
