Vectrus (NYSE: VEC) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has issued earnings and revenue guidance for 2016 with the midpoint outlooks respectively below and level the consensus Wall Street forecast on continued declines in sales for programs based in Afghanistan.
The Colorado Springs-based information technology and communications services contractor’s outlook forecasts 2016 in the range of $1.94-to-$2.31 with a $2.12 midpoint compared to the $2.16 average analyst estimate.
Vectrus projects revenue at between $1.11 billion and $1.19 billion with a $1.15 billion midpoint, in line with Wall Street’s expectation.
Afghanistan-based program sales fell 37.96 percent year-over-year to $167.65 million in 2015 to represent approximately 14 percent of the company’s overall sales.
The company plans to invest in its “core business” of information technology and communications services over the next two-to-three years, CEO Ken Hunzeker told investors.
Earnings for the full 2015 period came in at $2.23 per share with fourth quarter EPS at 55 cents to exceed analyst forecasts for both periods by 1 cent respectively.
Profit over 12 months totaled $24.19 million to register a 19.34-percent year-to-year decline and fourth quarter net income was $5.94 million to post a 66.85-percent increase from the prior year period.
Full 2015 revenue declined 1.91 percent year-over-year to $1.18 billion versus the consensus Wall Street outlook of $1.17 billion and fourth quarter sales rose 8.9 percent from the same timeframe last year to $311.19 million and top analysts’ expectations by $7.92 million.
As of Tuesday’s close, shares in Vectrus have fallen 4.64 percent since the start of the year and are down 37.81 percent over 12 months.