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Weekly Roundup Nov 23 – Nov 25 2015: Our 3Q Earnings Scorecard & More

Weekly Roundup
Nov 23 – Nov 25 2015

A Note From Our President & Founder Jim Garrettson

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 Street’s earnings expectations and 9 out of those 19 topped or equaled the consensus analyst forecast for both earnings and revenue.

All of GovCon’s “Big Five” stocks watched by investors as bellwethers for the sector beat The Street’s earnings and revenue forecasts: Boeing, General Dynamics,  Lockheed Martin, Northrop Grumman and Raytheon.

Shipbuilding giant Huntington Ingalls also soared past analyst estimates and rocket manufacturer Orbital ATK exceeded The Street’s forecasts.

Radio maker Harris Corp. was in line with Street earnings expectations for that company’s first fiscal 2016 quarter, its first full three-month financial period since the Exelis acquisition.

GovCon’s services area also included many “beats” from players such as engineering firm 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.

Comtech to Buy TeleCommunication Systems for $431M in US Govt Contract, Public Safety Expansion Push
Melville, New York-based Comtech seeks a balanced footprint across public sector and commercial markets through the deal.
BAE, SAIC Win $225M Marine Corps Amphibious Vehicle EMD Contracts
The Marine Corps narrowed the field of competitors from five to two and awardees will build between 10 and 13 prototypes each.
Cubic 4Q, FY 2015 Earnings Top Street Forecasts; Record Set for Yearly Sales
The San Diego-based defense and transportation contractor also issued its guidance for the 2016 fiscal year that started Oct. 1.
GDEF Completes STG Acquisition; Simon Lee to Chair Merged Company’s Board
STG sought to integrate its federal clients and cyber and software platforms with GDEF’s partners in the national security and defense sectors.
Ellen McCarthy Joins Noblis as NSP Org President
McCarthy heads to the Falls Church, Va.-based nonprofit from her prior role as director of plans and programs at NGA.
Aerojet Rocketdyne Awarded $1B+ in SLS Engine, CST-100 Propulsion Tech Contracts
A nine-year contract with NASA covers RS-25 engine construction and the second pact with Boeing covers work to build seven CST-100 capsule shipsets.
SpaceX Gets Initial ISS Crew Mission Task Order from NASA; Julie Robinson Comments
Elon Musk’s outfit lands its first mission order under NASA’s commercial contract to send crew and cargo to the International Space Station.
Kevin Shelly on MarkLogic’s ‘Enterprise NoSQL’ Database Approach for Agencies & Analytics Trends
MarkLogic’s public sector head also offers an outlook on commercial technology use at public sector organizations in this ExecutiveBiz Q&A.
Vencore’s FedRAMP 3PAO Status Renewed; Mac Curtis Comments
The company has acted as a third-party assessment organization for the governmentwide cloud computing initiative for two years.
Leidos, USC Partner on Network Analysis, Computing Research Projects; Gulu Gambhir Comments
USC will receive a five-year grant from the company to develop and analyze new algorithms for potential future technologies.
John Bansemer Nominated to ODNI Partner Engagement Assistant Director Post
The 28-year Air Force veteran and major general was also selected for promotion to receive his third star.
Bill Evanina: China Fails to Follow Anti-Cyber Theft Pact with US
The U.S.’ national counterintelligence executive says hackers based in China have not changed their behavior since the September agreement.
Frank Kendall, Christopher Miller: DoD Moves to Integrate Health Data Systems
Kendall also told the House Appropriations chairman the Pentagon and VA are working to attain interoperability between both departments’ health systems.

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