Engility Holdings (NYSE: EGL) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has reported third quarter earnings of 61 cents per share to fall 3 cents below the consensus Wall Street forecast.
Revenue for the Chantilly, Va.-based government services contractor came in at $570.45 million for the quarter versus analysts’ expectations of $586.48 million.
The company posted $345.06 million in revenue for the same quarter last year as its acquisition of TASC boosted the sales number year-over-year.
Engility reported $23.98 million in profit for the quarter.
Delayed contract awards and slow starts on awarded work attributed to the earnings figure and year-over-year revenue decline, according to Engility’s investor slides.
CEO Tony Smeraglinolo told investors GovCon services firms are seeing similar delays in awards with some at a timespan of between 12 and 18 months but the two-year budget deal signed by President Barack Obama Monday will offer Engility more clarity.
“Having that (deal) for the next two years will help us in terms of our forecasts and modeling, ” he said.
Proposals awaiting adjudication total $3.4 billion as of Sept. 30 and the company anticipates activity on contract awards to ramp up in the fourth quarter, the investor slides say.
Engility also adjusted its full-year earnings guidance to between $2.05 and $2.35 per share from its previous $2.05-to-$2.50 range with revenue of $2.05 billion-to-$2.1 billion from the prior $2.0 billion-to-$2.2 billion outlook.
The company raised its cash flow guidance for 2015 to between $65 million and $75 million from the previous $50 million-to-$60 million range on debt reduction, a tax refund and progress integration efforts associated with the TASC acquisition.
Shares in Engility are down 22.22 percent from the year’s start and have declined 22.4 percent over 12 months.