April 28 Market Close: GovCon Index Reverses Course, Plunges 1% on CACI Guidance Cut

GovConIndexDOWNThe GovCon Index had all of its Wednesday gains wiped out in Thursday trade with a sharp decline of 1.482 percent to 76.842 after a third-quarter revenue miss and guidance cut from government services contractor CACI International (NYSE: CACI).

Arlington, Virginia-based CACI brought down the high ends of both its full-year earnings and revenue outlooks on third-quarter figures that fell below analyst estimates due to what CEO Ken Asbury described to investors as delays in the timing of certain awards from federal agencies.

CACI ended Thursday as the GovCon Index’s largest lagger at 11.11 percent, or $12.26.

Fairfax, Virginia-headquartered ManTech International (Nasdaq: MANT) surged 10.65 percent, or $3.49,  a day after the government technology services provider topped analyst estimates for both second-quarter earnings and revenue.

Raytheon (NYSE: RTN) fell 1.82 percent, or $2.36, after the company reported a year-over-year second quarter profit decline but lifted its 2016 earnings outlook.

McKesson Corp. (NYSE: MCK) also weighed on the Index with a plunge of 4.83 percent, or $8.60, on strong volume at 2.97 million shares traded to double the stock’s 10-day average.

Raytheon was the GovCon Index’s second-most actively traded stock Thursday at 4.29 million shares traded versus the 10-day average of 1.6 million, with McKesson next in third.

Both Raytheon and McKesson are also listed in the S&P 500 composite index, which closed down 0.92 percent on pre-open news that Japan’s central bank would make no changes to current monetary policy and continued declines in technology shares.

All 10 S&P sectors closed lower as investors also gauged data that showed the U.S. economy expanded 0.5 percent in the first quarter, which Reuters reported fell below the consensus analyst expectation and was the lowest reading in two years.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
MANT ManTech International 36.27 +3.49 +10.65%
NAV Navistar International 15.66 +0.60 +3.98%
I Intelsat 3.94 +0.25 +6.78%
BAH Booz Allen Hamilton 28.10 +0.19 +0.68%
CAE CAE 11.95 +0.10 +0.84%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
MANT ManTech International 36.27 +3.49 +10.65%
I Intelsat 3.94 +0.25 +6.78%
NAV Navistar International 15.66 +0.60 +3.98%
CAE CAE 11.95 +0.10 +0.84%
BAH Booz Allen Hamilton 28.10 +0.19 +0.68%

Market Summary

Advancing GovCon Index Issues 7
Declining GovCon Index Issues 23
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 76.842 -1.156 -1.482%
S&P 500 2, 075.81 -19.34 -0.92%
Dow Jones Industrial Average 17, 830.76 -210.79 -1.17%
NASDAQ 4, 805.29 -57.85 -1.19%

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