April 27 Market Close: GovCon Index Boosted By Defense Prime Gains After 1Q Earnings Reports

GovConIndexUPThe GovCon Index soared 1.396 percent to 77.998 Wednesday on a series of pre-market earnings reports from several large defense prime contractors as Boeing (NYSE: BA) overcame an early morning decline to close in positive.

GovCon Wire posted a summary of all six GovCon Index-related earnings figures plus that of United Technologies Corp. (NYSE: UTX) released before U.S. financial markets opened.

Boeing ended Wednesday respectively as the Index’s third-biggest net and fourth-largest percentage gainer despite the airplane manufacturer’s first-quarter earnings report that fell short of analyst expectations as both revenue showed an overall increase and full-year guidance was left unchanged.

Investors also cheered Boeing’s $483 million free cash flow figure for the first quarter, which Reuters reported was above analyst forecasts.

First-quarter earnings missed Wall Street forecasts on charges to the company’s 747 program and KC-46 aerial refueling tanker for the U.S. Air Force but total defense segment revenue grew 18.48 percent year-over-year and increased its share in overall sales by 5 percent from the same period in 2015.

L-3 Communications (NYSE: LLL) led GCI net gainers and was second in percentage after the New York City-based defense contractor topped analysts’ first-quarter earnings and revenue estimates and reported a 3.2-percent increase in operating margin.

L-3 raised its full-year outlook for earnings per share with revenue guidance left unchanged.

General Dynamics (NYSE: GD) — second in GCI net change gainers and third in percentage — also exceeded Wall Street’s forecasts for both figures, as did Northrop Grumman (NYSE: NOC) and the Reston, Virginia-based government services contractor Leidos Holdings (NYSE: LDOS).

L-3 and Northrop both hit new 52-week highs in intraday trade, plus Lockheed Martin (NYSE: LMT) one day after both an earnings report that topped analyst expectations and a forecast lift, as well as Raytheon (NYSE: RTN) with the missile maker due to report first-quarter results Thursday morning.

Leidos ended Wednesday as the GCI’s largest net- and percentage-decliner at $1.20, or 2.31 percent.

Montreal-headquartered technology services company CGI Group (NYSE: GIB) fell 1.32 percent after a first-quarter earnings miss against Wall Street forecasts.

U.S. stocks except for technology held positive after the Federal Reserve left interest rates unchanged and said in its policy statement it expects “only gradual increases, ” according to CNBC.

The S&P 500 technology sector plunged 0.8 percent and helped drag the Nasdaq composite index to its first five-day streak of declines since January, while telecommunications and energy shares were the leading gainers, CNBC reported.

Crude oil futures in New York climbed 2.93 percent to $45.33 a barrel.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
LLL L-3 Communications* 130.88 +6.06 +4.85%
GD General Dynamics* 143.61 +4.90 +3.53%
BA Boeing* 137.08 +3.84 +2.88%
NOC Northrop Grumman* 207.00 +3.43 +1.68%
HII Huntington Ingalls Industries 146.42 +2.04 +1.41%

* Also listed in the S&P 500 composite index

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
NAV Navistar International 15.06 +0.86 +6.06%
LLL L-3 Communications* 130.88 +6.06 +4.85%
GD General Dynamics* 143.61 +4.90 +3.53%
BA Boeing* 137.08 +3.84 +2.88%
ACM AECOM 33.00 +0.90 +2.80%

Market Summary

Advancing GovCon Index Issues 24
Declining GovCon Index Issues 6
Unchanged GovCon Index Issues 0

Market Summary

Index Value Net Change % Change
GovCon Index 77.998 +1.074 +1.396%
S&P 500 2, 095.15 +3.45 +0.16%
Dow Jones Industrial Average 17, 990.09 +51.23 +0.28%
NASDAQ 4, 863.14 -25.14 -0.51%

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