Hello, Guest!
  • Friday, April 26, 2024

Wells Fargo Report: Investors Seek Additional Financial Data on Gov’t Services Sector


A report by Wells Fargo Securities says that while investors like to see the growth and visibility of the government services industry, they also want more information to help them differentiate private sector players holding large contracts.

WFS analysts Ed Caso and Justin Donati noted in the report the nature of multiyear, multiple-award and indefinite-delivery/indefinite-quantity contracts could make it difficult for an investor to interpret award activity, book-to-bill ratio, annual revenue contribution and amount of new opportunity.

One investor recommended that industry players offer annual contract value estimates.

“It is time for next level of disclosure, in our view, for the group shares to sustain,” said Caso and Donati.

They added that secondary metrics for revenue outlook as well as earnings before interest, tax, depreciation and amortization are among the factors to consider when assessing large awards.

Video of the Day

Related Articles

RTX Books $344M Standard Missile Production Contract Contract Awards

RTX Books $344M Standard Missile Production Contract

Raytheon, a subsidiary of RTX (NYSE: RTX), has received a $344 million contract to build and deliver two Standard Missile variants with a common guidance section to U.S. and international military customers. The company said Thursday it will produce the SM-2 Block IIICU and SM-6 Block IU missiles on a common production line for the

VTG Acquires Digital Transformation Services Provider Vana Solutions; John Hassoun Quoted M&A Activity

VTG Acquires Digital Transformation Services Provider Vana Solutions; John Hassoun Quoted

VTG has moved to expand its portfolio of digital transformation platforms and cloud services for defense and intelligence community customers through its acquisition of Vana Solutions. Vana Solutions is a Dayton, Ohio-based company founded by Srujal Sheth and Sunit Sheth in 2005 and is focused on delivering cloud services, advanced analytics, data fabric platforms and

Kristen McLeod Promoted to Calibre Systems EVP, CFO Executive Moves

Kristen McLeod Promoted to Calibre Systems EVP, CFO

Kristen McLeod, most recently senior vice president of finance and accounting and controller at Calibre Systems, has assumed the roles of executive VP and chief financial officer at the Alexandria, Virginia-based management consulting and digital transformation company. In this capacity, she will serve as a corporate officer and fiscal strategist and continue to offer insights