A Note From Our President & Founder Jim Garrettson
Corporate earnings season is underway for the first quarter and gives anÂ opportunity for investors to gauge the financial health and performance of the world’s largest defense and government contractors.
We got a mixed glimpse of what is in store this week for GovCon Index stocks with first quarter statements from ground and air vehicle maker Textron, avionics technology contractorRockwell Collins and the global industrial conglomerate Honeywell.
Executive Mosaic’s GovConÂ Index of 30 publicly-traded government contractor stocks has held steadily over the key 75-point barrier for six straight days to punctuate its gradual recovery from a three-month low of 66 points on Feb. 11.
Low oil prices, worries over Chinaâs economy, currency weakness and concerns over the worldâs security environment continue to be the main drivers of activity in U.S. financial markets.
GovCon stocks and especially those with significant global footprints are no exception to the rule but can be insulated from some global headwinds as defense spending is always a constant, as Credit Suisse analyst Robert Spingarn has highlighted.
As noted here in the last edition, all of the U.S.â âBig Fiveâ government contractors (Boeing, General Dynamics, Lockheed Martin, Northrop Grumman & Raytheon) will report second quarter earnings next week and will certainly give the GovCon Index a spike in activity.
Other GCI companies scheduled for earnings calls next week include CACI International, CGI Group, L-3 Communications, Leidos and ManTech International.
Mile Corrigan has dedicated her career to advancing national security goals through measured, consistent technological progress and continuous innovation for the federal sector. A long-time employee of Noblis, the Reston, Virginia-based nonprofit science and technology organization, Corrigan initially served in roles such as computer scientist and software architect where she launched and operationalized Noblis’ Center
John Mengucci, president and CEO of CACI International (NYSE: CACI), said the company is spending about $35 million annually on independent research and development with a focus on signals intelligence, space and electronic warfare areas, Defense News reported Monday. He told the publication on the sidelines of a forum in California that several technology-focused deals
Northrop Grumman (NYSE: NOC) has secured a five-year, $405.7 million task order from the U.S. Air Force to provide engineering services in support of intelligence activities at the Department of Defense and intelligence community centers and satellite branches. The company will also perform operational technical work under the cost-plus-fixed-fee task order, DOD said Monday. A total