Perspecta (PRSP) Tops Q4 EPS by 4c, Revenues Beat; Offers FY21 EPS/Revenue Guidance Below Consensus

Perspecta (NYSE: PRSP) reported Q4 EPS of $0.55, $0.04 better than the analyst estimate of $0.51. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.07 billion.

• Revenue: $1.1 billion for fourth quarter; $4.5 billion for fiscal year
• Diluted EPS: $(4.89) for fourth quarter; $(4.17) for fiscal year due to one-time non-cash impairment charge
• Adjusted Diluted EPS: $0.55 for fourth quarter; $2.16 for fiscal year
• Operating Cash Flow: $186 million for fourth quarter; $626 million for fiscal year
• Adjusted Free Cash Flow: $179 million for fourth quarter; $542 million for fiscal year
• Bookings: $1.2 billion (1.1x book-to-bill) for fourth quarter; $6.1 billion (1.4x book-to-bill) for fiscal year
• Fiscal year 2021 guidance issued

"We finished our fiscal year by delivering yet another quarter of strong performance," said Mac Curtis, president and chief executive officer, Perspecta. "The health and safety of our dedicated employees is our top priority while remaining focused on supporting our customers' missions and driving value for our shareholders. I am incredibly impressed by the resiliency, creativity and compassion of our workforce. We rose to the COVID-19 challenge and continued to deliver in new, safe and innovative ways. This led to results that exceeded the high end of our revenue, earnings and free cash flow conversion expectations. Our strong business development efforts combined with this dedication ensure we are well positioned for fiscal year 2021 and beyond."

GUIDANCE:

Perspecta sees FY2021 EPS of $1.90-$2.03, versus the consensus of $2.12. Perspecta sees FY2021 revenue of $4.26-4.41 billion, versus the consensus of $4.48 billion.

John Kavanaugh, Perspecta CFO, commented, "We are pleased to have exceeded all of our financial targets in fiscal year 2020. We continue to demonstrate a consistent track record of execution. Our fiscal year 2021 guidance reflects our expectations of continuing to deliver on our commitments."

Due to the mission-critical nature of the majority of our business, substantially all of the services we provide to our government customers have been considered essential services, which has allowed them to continue. Therefore, the overall impact of the COVID-19 pandemic on our results of operations and liquidity were immaterial in the fourth quarter of fiscal year 2020. However, we have experienced and expect to continue to experience certain disruptions in our operations and impact to our workforce and subcontractor workforce due to illness, quarantines, shelter-in-place orders, closures of our facilities, closures of our customers' facilities and other restrictions or government actions in connection with the COVID-19 pandemic. We continue to monitor the situation, to assess further possible implications to our operations, supply chain and customers, and to take actions in an effort to mitigate adverse consequences. Our fiscal year 2021 guidance above accounts for a potential impact of the COVID-19 pandemic of approximately $75 million in revenue and $20 million in operating income.

For earnings history and earnings-related data on Perspecta (PRSP) click here.

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