September 1 Market Close: GovCon Index Dragged by Vectrus Plunge After Mideast Contract Loss to URS

GovConIndexDOWNExecutive Mosaic’s GovCon Index started September with a slight decline Thursday to register its third straight loss as Vectrus (NYSE: VEC) plunged almost 20 percent on the loss of a contract for Middle East-based logistics services the company held since 2010.

Colorado Springs-based Vectrus said pre-open the Army Prepositioned Stocks-5 contract for services in Kuwait and Qatar contributed $93 million in revenue through June 2016 but the company added it does not plan to revise its full-year financial guidance at this time.

In filings with the Securities and Exchange Commission, Vectrus called the contract “fully funded” through Nov. 30 with options to extend through Feb. 28.

Vectru’ stock traded at nearly than eight times above the three-month average volume with close to 644, 000 total shares exchanged Thursday.

AECOM‘s (NYSE: ACM) URS Federal Services business was selected to continue the APS-5 work under a $70.4 million contract modification the Defense Department announced after markets closed Wednesday.

GovCon Index gainers slightly edged laggers and five of the GCI’s 11 S&P 500-listed stocks advanced during a choppy trading day for U.S. markets.

Orbital ATK (NYSE: OA) led GCI net advancers after Deutsche Bank initiated coverage of the space systems and weapons maker with a “Buy” rating and $100 price target with a forecast of increased incremental buying of the stock after the company releases revised financial statements and carries out its next resupply mission to the International Space Station.

The S&P 500 closed flat as investors looked ahead to the August employment report due Friday morning for clues on whether the Federal Reserve will move on an interest rate hike in September.

Futures markets have the odds of a September increase at 34 percent compared to 40 percent Thursday, Bloomberg reported.

Market Summary

Index Value Net Change % Change
GovCon Index 81.073 -0.080 -0.099%
S&P 500 2, 170.86 -0.09 -0.00%
Dow Jones Industrial Average 18, 419.30 +18.42 +0.10%
NASDAQ 5, 227.21 +13.99 +0.27%
Advancing GovCon Index Issues 17
Declining GovCon Index Issues 13
Unchanged GovCon Index Issues 0

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
VEC Vectrus 26.91 -6.83 -20.24%
MCK McKesson Corp. * 183.27 -1.35 -0.73%
CACI CACI International 98.66 -0.70 -0.70%
HON Honeywell International * 116.13 -0.58 -0.50%
NAV Navistar International 13.53 -0.51 -3.63%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
VEC Vectrus 26.91 -6.83 -20.24%
I Intelsat 2.57 -0.13 -4.81%
NAV Navistar International 13.53 -0.51 -3.63%
ACM AECOM 30.44 -0.39 -1.26%
MMS Maximus 58.35 -0.47 -0.80%

Top GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▴ % Change
OA Orbital ATK, Inc 77.27 +1.84 +2.44%
GIB CGI Group 49.84 +1.15 +2.36%
HII Huntington Ingalls Industries 165.96 +0.79 +0.48%
ICFI ICF International 42.56 +0.71 +1.70%
CSRA CSRA * 26.09 +0.70 +2.76%

Top GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▴
CSRA CSRA * 26.09 +0.70 +2.76%
OA Orbital ATK, Inc 77.27 +1.84 +2.44%
GIB CGI Group 49.84 +1.15 +2.36%
BAESY BAE Systems 28.62 +0.53 +1.89%
ICFI ICF International 42.56 +0.71 +1.70%

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