|Third quarter earnings season has come to a conclusion and the week of gives us a good checkpoint to see how the GovCon sector fared in this round.
Twenty-six out of 30 GovCon Index-listed contractors have reported financial results for their third quarters or other fiscal periods since the Sept. 30 market close with SAIC and military truck maker Navistar due to post earnings figures in December.
Of the 26 that released numbers, 19 met or exceeded Wall Streetâs earnings expectations and 9 out of those 19 topped or equaled the consensus analyst forecast for both earnings and revenue.
All of GovConâs âBig Fiveâ stocks watched by investors as bellwethers for the sector beat The Streetâs earnings and revenue forecasts: Boeing, General Dynamics, Â Lockheed Martin, Northrop Grumman and Raytheon.
Shipbuilding giant Huntington Ingalls also soared past analyst estimates and rocket manufacturerÂ Orbital ATK exceeded The Streetâs forecasts.
Radio maker Harris Corp. was in line with Street earnings expectations for that companyâs first fiscal 2016 quarter, its first full three-month financial period since the Exelis acquisition.
GovConâs services area also included many âbeatsâ from players such as engineering firmÂ AECOM, consultant Booz Allen and national security-health contractor Leidos.
This earnings season also featured outlooks from Index CEOs Tony Smeraglinolo of Engility, Sudhakar Kesavan of ICF International and Kelly Ortberg of Rockwell Collins on the two-year federal budget deal signed in November.
All three indicated the industry would have further clarity over the next two years as opposed to prior periods that featured stopgap funding measures and prospects of government shutdowns.