November 3 Market Close: GovCon Index Down 1% on Huntington Ingalls 3Q Miss, Leidos Jumps on Street Beat

GovConIndexDOWNExecutive Mosaic’s GovCon Index tumbled Thursday after Huntington Ingalls Industries (NYSE: HII) reported a year-over-year decline in third quarter earnings with GCI-S&P 500 companies also notable laggers as U.S. stocks also fell on investor worries over election uncertainty.

GovCon Index advancers edged decliners 16-14 and three of its 11 S&P 500 companies closed green with General Dynamics (NYSE: GD) the best net performer of co-listed stocks but well outside the top five for gainers.

Newport News, Virginia-based shipbuilder Huntington Ingalls closed as the GCI’s lowest net performer on third quarter results below analysts’ forecasts on the top and bottom lines a day after the company announced its agreement to purchase Camber Corp. for $380 million and create a new government services segment through the acquisition.

Huntington Ingalls executives subsequently detailed the company’s strategy for the government services business and how they view it as a contributor to cash flow and shareholder return in a Thursday morning conference call with investors.

GCI-S&P 500 stocks Lockheed and McKesson also weighed significantly by at least $6.00 each with fellow co-listed company Northrop Grumman (NYSE: NOC) fourth-lowest on net decline and Engility Holdings (NYSE: EGL) fifth for laggers.

Lockheed’s stock tumbled after the Defense Department issued a unilateral $6.1 billion contract action to fund the low-rate initial production of 57 lot 9 F-35 fighter jets previously self-funded by the company’s own cash to keep work on schedule.

Shares in Engility have traded down 16.39 percent since the company raised full-year earnings guidance Tuesday to give back its gain of 10.65 percent in that session.

Leidos Holdings (NYSE: LDOS) led all GCI net gainers and hit a 52-week high during intraday trade after the government services contractor lifted full-year earnings and revenue guidance with bottom-line results above Wall Street’s forecast.

This was Reston, Virginia-based Leidos’ first financial statement since its Aug. 16 merger into the former Lockheed Martin (NYSE: LMT) government services business to double in projected revenue.

Orbital ATK (NYSE: OA) closed third for GCI advancers after the Dulles, Virginia-based aerospace and defense company cut its projected losses from an accounting review related to a U.S. Army ammunition production contract.

CACI International (NYSE: CACI), ICF (Nasdaq: ICFI) and Booz Allen Hamilton (NYSE: BAH) also ended in the top five for net gainers.

ICF’s stock have traded up 6.3 percent since it lifted third quarter earnings guidance Tuesday, while Booz Allen has added 5.66 percent since the consulting services contractor boosted its full-year outlook on earnings and sales.

Information technology stocks led six S&P 500 sectors downward with utilities the top performers as markets remain uncertain about the potential impact on the election from the FBI investigation into emails related to Hillary Clinton.

Market Summary

IndexValueNet Change% Change
GovCon Index78.064-0.783-0.993%
S&P 5002, 088.66-9.28-0.44%
Dow Jones Industrial Average17, 930.67-28.97-0.16%
Advancing GovCon Index Issues16
Declining GovCon Index Issues14
Unchanged GovCon Index Issues0

Lowest GovCon Index Net Performers

SymbolCompany$ Current PriceNet Change ▾% Change
HIIHuntington Ingalls Industries148.74-11.23-7.02%
LMTLockheed Martin *238.70-6.41-2.62%
MCKMcKesson Corp. *129.59-6.24-4.59%
NOCNorthrop Grumman *225.54-3.13-1.37%
EGLEngility Holdings26.72-1.99-6.93%

Lowest GovCon Index Percentage Performers

SymbolCompany$ Current PriceNet Change% Change ▾
HIIHuntington Ingalls Industries148.74-11.23-7.02%
EGLEngility Holdings26.72-1.99-6.93%
MCKMcKesson Corp. *129.59-6.24-4.59%
LMTLockheed Martin *238.70-6.41-2.62%

Top GovCon Index Net Gainers

SymbolCompany$ Current PriceNet Change ▴% Change
LDOSLeidos Holdings44.39+3.18+7.72%
OAOrbital ATK73.80+1.61+2.23%
CACICACI International101.05+1.60+1.61%
BAHBooz Allen Hamilton31.74+0.55+1.76%

Top GovCon Index Percentage Gainers

SymbolCompany$ Current PriceNet Change% Change ▴
LDOSLeidos Holdings44.39+3.18+7.72%
OAOrbital ATK73.80+1.61+2.23%
BAESYBAE Systems26.72+0.49+1.87%
BAHBooz Allen Hamilton31.74+0.55+1.76%
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