Hello, Guest!

Vectrus Lifts 2016 Earnings, Revenue Guidance

VectrusVectrus (NYSE: VEC) has lifted full-year earnings and revenue guidance on improved outlooks in cash flow for the 2016 second half and expectations of extra payments on debt.

The Colorado Springs-based government communications services contractor now expects earnings per share in the $2.07-$2.32 range versus the previous $2.02-$2.31 range with revenue of $1.18 billion-$1.2 billion compared to the prior $1.15 billion-$1.19 billion forecast.

Second quarter earnings came in at 55 cents per share to fall short of analysts forecasts of 57 cents and net income rose a nominal half-percent from the prior year period to $6.05 million.

Revenue also fell by 0.52 percent year-over-year to $307.89 million on declines in Afghanistan, U.S. and European programs that were partially offset by increases in Middle East activity.

Wall Street analysts expected Vectrus to report $295.64 million in second quarter sales.

Vectrus said year-to-date free cash flow totaled $19 million in a reversal from the $0.9 million stated for the first six months in 2015 and lifted its 2016 cash flow forecast to $28 million-$32 million from the prior $22 million-$30 million range.

The company made a $2 million second quarter payment on debt from money borrowed to pay former parent Exelis when the spinoff took place in September 2014 and expects to pay down $8 million-$10 million for 2016.

Long-term debt as of July 1 was $82.97 million.

As of Tuesday’s close, shares in Vectrus are up 11.84 percent from the year’s start and have risen 14.7 percent over 12 months.

Video of the Day

GovCon Wire Logo

Sign Up Now! GovCon Wire provides you with Daily Updates and News Briefings about Financial Report

Related Articles