Vectrus, Inc. (VEC) Tops Q4 EPS by 2c, Revenues Miss; Offers FY20 EPS/Revenue Guidance

Vectrus, Inc. (NYSE: VEC) reported Q4 EPS of $0.93, $0.02 better than the analyst estimate of $0.91. Revenue for the quarter came in at $365.3 million versus the consensus estimate of $365.66 million.

"2019 was a year of continued strategic and financial momentum. Revenue growth and margin expansion remained strong through the fourth quarter as we phased in new business and increased our share with existing and new clients," said Chuck Prow, president and chief executive officer. "During the year we invested internally and through M&A to advance our talent and capabilities to support expected significant volume increases in 2020 and beyond. On the eve of LOGCAP V phase-in, with new recent business wins and $2.5 billion in bids submitted, we remain confident in our strategy and on track to our goal of $2.5 billion in revenue and 7% EBITDA margin by 2023."

"As we anticipated, Vectrus' growth remained strong throughout the second half of 2019, with fourth quarter revenue growth of 11%, 7% of which was organic, and adjusted EBITDA1 growth of 29%," said Susan Lynch, senior vice president and chief financial officer. "While net cash from operations was hindered in the quarter by a now-resolved temporary collection issue, our ability to generate strong cash flow, an important characteristic of our business, is unimpeded, and we expect to generate over 100% cash conversion to net income going forward."

GUIDANCE:

Vectrus, Inc. sees FY2020 EPS of $3.48-$3.81, versus the consensus of $3.77. Vectrus, Inc. sees FY2020 revenue of $1.475-1.525 billion, versus the consensus of $1.52 billion.

Prow continued, "At the mid-point, our initial 2020 guidance contemplates 14% EPS growth on expanded margins and a somewhat slower than originally anticipated phase-in for LOGCAP V. Our highest immediate priority is a flawless LOGCAP V startup. Other key priorities include advancement of our efforts to continuously improve operating performance as well as additional strategic M&A to expand our client set and capabilities to strengthen our leadership in the converged market."

Prow concluded, "We expect 2020 to be another strong year for Vectrus. I thank our teams for their continued hard work as we transform Vectrus into a higher value and differentiated platform and for their dedication to our support of our servicemen and women in their critical missions around the globe."

For earnings history and earnings-related data on Vectrus, Inc. (VEC) click here.

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