April 29 Market Close: GovCon Index Free Fall Deepens to Post Weekly Decline, End Positive April

GovConIndexDOWNThe GovCon Index deepened its slide Friday with a loss of 0.481 points to 76.361 that puts the GCI at a weekly decline but a sharp gain for the month of April as earnings reports for large government contractors dominated trading activity Monday through Friday.

April represents the Index’s third consecutive month with positive movement so far in 2016 at a year-to-date gain of 5.24 percent on gradual recovery from a volatile January and fourth quarter from last year.

Several of the largest GovCon platform and technology makers reported first quarter earnings and sales this week that topped Wall Street expectations except for Boeing (NYSE: BA) as the airplane maker took a charge on the KC-46 tanker.

Shares in the airplane maker gained 2.86 percent for the week as investors welcomed the affirmed full-year guidance.

Lockheed Martin (NYSE: LMT) lifted its 2016 outlook and beat analyst earnings and revenue expectations, while General Dynamics (NYSE: GD) also exceeded Wall Street’s outlook on both counts as did Northrop Grumman (NYSE: NOC), which increased its 2016 earnings outlook.

A fiscal third quarter sales miss by CACI International (NYSE: CACI) weighed on the Index Thursday and Friday with that company’s stock down 12.86 percent over those two sessions.

Shares in Raytheon (NYSE: RTN) also declined 2.71 percent Thursday and Friday after the weapons maker posted a year-over-year profit decline.

Next week’s earnings reports for GovCon Index companies include Cubic Corp. (NYSE: CUB) on Monday,  Harris Corp. (NYSE: HRS) for Tuesday and healthcare services contractor McKesson (NYSE: MCK) Wednesday.

Huntington Ingalls Industries (NYSE: HII) and Orbital ATK (NYSE: OA) will release their latest figures before markets open Thursday with Engility Holdings (NYSE: EGL) and ICF International (NASDAQ: ICFI) due after the closing bell.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
LLL L-3 Communications * 131.53 +0.69 +0.53%
ICFI ICF International 39.37 +0.65 +1.68%
NOC Northrop Grumman * 206.26 +0.65 +0.32%
ACM AECOM 32.49 +0.22 +0.68%
BAESY BAE Systems 27.94 +0.02 +0.06%

* Also listed in the S&P 500 composite index

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change
ICFI ICF International 39.37 +0.65 +1.68%
ACM AECOM 32.49 +0.22 +0.68%
LLL L-3 Communications * 131.53 +0.69 +0.53%
NOC Northrop Grumman * 206.26 +0.65 +0.32%
I Intelsat 3.95 +0.01 +0.25%

Market Summary

Advancing GovCon Index Issues 6
Declining GovCon Index Issues 23
Unchanged GovCon Index Issues 1

 

Index Value Net Change % Change
GovCon Index 76.361 -0.481 -0.626%
S&P 500 2, 065.30 -10.51 -0.51%
Dow Jones Industrial Average 17, 773.64 -57.12 -0.32%
NASDAQ 4, 775.36 -29.93 -0.62%

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