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Engility Swings to 4Q & FY 2015 Net Loss; 12-Month Revenue Meets Street Outlook

Engility-logoEngility Holdings (NYSE: EGL) — one of 30 companies listed in Executive Mosaic’s GovCon Index — swung to a net loss for the fourth quarter of 2015 on reductions to the company’s market capitalization value after it issued fiscal year 2016 guidance below Wall Street’s expectations.

The Chantilly, Va.-based government services contractor reported a loss of $238.7 million, or $6.53 per share, for the October-December period that includes a $292 million writedown to reflect the Jan. 21 share price decline of 47.84 percent after the guidance release.

According to investor slides, the writedown is not related to the company’s February 2015 purchase of TASC and aims to bring Engility’s value in line with its market capitalization of $588.49 million as of Wednesday’s market close.

Engility reported a net loss of $235.35 million, or $7.02 per share for 2015 compared to prior year earnings of $35.42 million and $1.97 per share.

Adjusted earnings in the fourth quarter were stated as $25 million, or 66 cents per share compared to analyst expectations of 58 cents per share with full-year adjusted net income at $76 million, or $2.24 per share versus Wall Street’s outlook of $2.10 EPS.

The company reported fourth quarter revenue of $537 million to exceed Wall Street’s outlook by $2.61 million and full-year sales as $2.08 million to fall in line with analyst forecasts.

Engility held to its 2016 guidance that forecasts earnings of between $1.00 and $1.15 per share with revenue in the $2 billion-$2.15 billion range.

As of Wednesday’s close, shares in Engility have declined 52.65 percent from the start of the year and are down 58.56 percent over 12 months.

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