Cubic Corp. (NYSE: CUB) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has lifted revenue guidance for its 2016 fiscal year in part on added contributions from two acquired businesses and exceeded Wall Street estimate for the company’s second quarter.
The San Diego-based defense and transportation contractor now expects full-year revenue in the range of $1.51 billion-to-$1.56 billion versus the prior outlook of $1.45 billion-to-$1.5 billion with added sales from the C4ISR companies GATR and Teralogics Cubic purchased in December 2015 for approximately $271.5 million combined.
A projected increase in C4ISR and training system product shipments during the fourth quarter also factored in to the guidance boost, Cubic said.
Cubic runs its fiscal calendar on a October-September basis.
Second quarter revenue totaled $366 million to exceed analyst expectations of approximately $349.67 million and register an approximate 8.03-percent increase from the prior year period with all three segments up from the January-March period in FY 2015 — transportation, global defense systems and global defense services.
Earnings came in at 38 cents versus Wall Street’s outlook of 23 cents with partial contributions from a tax benefit booked in the second quarter.
Cubic narrowed its FY 2016 earnings guidance to a range of $1.20-$1.40 per share from the previous $1.30-to-$1.55 EPS forecast in part on acquisition and integration costs related to GATR and Teralogics and currency market headwinds.
As of 1:20 p.m. Eastern, shares in Cubic were up 17 cents in intraday trade with respective declines of 10.88 percent from the year’s start and 15.44 percent over 12 months.