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May 3 Market Close: GovCon Index Sinks on Harris Guidance Cut, CACI’s Extended Slide as Northrop Gets Upgrade

GovConIndexDOWNThe GovCon Index held negative throughout Tuesday trade and closed at a decline of 0.489 points to 76.365 with Harris Corp. (NYSE: HRS) as the largest lagger after another full-year guidance cut by the military radio maker.

Melbourne, Florida-based Harris fell 5.48 percent — or $4.43 — after the company reduced the 12-month revenue forecast in its third-quarter financial statement and brought full-year earnings expectations to the prior outlook’s lower end.

Harris — also an S&P 500 stock — cited declining orders in the Middle East in its revised outlook and attributed oil price declines to the previous revenue guidance cut issued in February.

Tuesday’s decline swings Harris’ 12-month change to a 5.02-percent loss as the stock was up nearly one-half percent over 52 weeks prior to the market open, while shares are down 12.07 percent since the start of the year.

CACI International (NYSE: CACI) continued its post-earnings slide with decline of 2.29 percent — or $2.23 — and is down 13.5 percent percent over four days since the government and information services contractor reported second-quarter revenue below analyst expectations.

Cubic Corp. (NYSE: CUB) fell 5.19 percent — or $2.16 — a day after the defense and transportation contractor narrowed its full-year earnings guidance and lifted the 12-month sales forecast on added contributions from two companies acquired in the fall.

Northrop Grumman (NYSE: NOC) rose 0.62 percent — or $1.29 — after Drexel Hamilton raised the aerospace and defense contractor’s price target from $207 to $235 and restated the stock’s current “Buy” rating in a research note to investors.

Drexel Hamilton cited Northrop’s prospects for growth from its role as a subcontractor on the F-35 fighter jet program and prime awardee for the B-21 Long Range Strike Bomber.

Defense primes Lockheed Martin (NYSE: LMT), General Dynamics (NYSE: GD), Orbital ATK (NYSE: OA) and Rockwell Collins (NYSE: COL) also posted gains with L-3 Communications (NYSE: LLL) up for a second straight session after an upgrade from Goldman Sachs Monday.

U.S. stocks declined on global growth worries stemming from data that showed manufacturing in China showed contraction for a 14th consecutive month to fall below analyst expectations as well as a decline in overall employment for April, CNBC reported.

The S&P 500 composite index plummeted 0.87 percent with energy shares as the biggest decliner on a decline in U.S. oil futures by 2.52 percent to $43.65 a barrel.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
LMT Lockheed Martin* 234.70 +1.46 +0.63%
NOC Northrop Grumman* 209.60 +1.29 +0.62%
GD General Dynamics* 142.34 +0.51 +0.36%
LLL L-3 Communications* 134.00 +0.46 +0.34%
OA Orbital ATK 87.48 +0.37 +0.42%

* Also listed in the S&P 500 composite index

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
LMT Lockheed Martin* 234.70 +1.46 +0.63%
NOC Northrop Grumman* 209.60 +1.29 +0.62%
OA Orbital ATK 87.48 +0.37 +0.42%
GD General Dynamics* 142.34 +0.51 +0.36%
LLL L-3 Communications* 134.00 +0.46 +0.34%

Market Summary

 

Advancing GovCon Index Issues 6
Declining GovCon Index Issues 23
Unchanged GovCon Index Issues 1
Index Value Net Change % Change
GovCon Index 76.365 -0.489 -0.636%
S&P 500 2, 063.37 -18.06 -0.87%
Dow Jones Industrial Average 17, 750.91 -140.25 -0.78%
NASDAQ 4, 763.22 -54.37 -1.13%
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