Vectrus, Inc. (VEC) Tops Q3 EPS by 7c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus

Vectrus, Inc. (NYSE: VEC) reported Q3 EPS of $0.89, $0.07 better than the analyst estimate of $0.82. Revenue for the quarter came in at $352.4 million versus the consensus estimate of $344.01 million.

• Q3 revenue of $352.4 million, +4.9% sequentially; COVID-19 adversely impacted revenue by $12.9 million or 3.7% year-on-year
• Q3 diluted EPS of $0.88; Adjusted diluted EPS(1) of $0.89, COVID-19 adversely impacted EPS by $0.14
• Adjusted EBITDA margin(1) of 4.8%, driven by ongoing performance initiatives
• Robust backlog of $3.7 billion; 1.5x TTM book-to-bill
• Reiterating 2020 guidance

"Third quarter results were solid, reflecting improved volumes and margin levels," said Chuck Prow, president and chief executive officer. "In addition, we continued to execute well on our growth strategy on all fronts, particularly with respect to diversifying our revenue streams and advancing our leadership position in the converged infrastructure market. For example, we were recently awarded a contract to support Navy Smart Warehouse Prototype 5G Applications. While modest in size, this prime contract is the result of our deliberate, strategic and transformational investment in expanding our capabilities at the intersection of traditional infrastructure and integrated digital services. We were also recently awarded a position on a "Best in Class" General Services Administration multi-year, multiple award, IDIQ contract vehicle, allowing access to a funding stream that is new to us and affords additional avenues of organic growth.

"For the remainder of the year, we are focused on delivering on all of our programs while keeping our teams and our clients safe; growing our pipeline of opportunities in the converged infrastructure market; and pursuing strategic M&A," said Prow. "I want to thank our entire work force for their continued dedication, fortitude, and resourcefulness every day as we face the ongoing global pandemic."

GUIDANCE:

Vectrus, Inc. sees FY2020 EPS of $2.68-$2.82, versus the consensus of $2.63. Vectrus, Inc. sees FY2020 revenue of $1.385-1.405 billion, versus the consensus of $1.4 billion.

Lynch continued, "We expect the momentum experienced in the third quarter to continue for the remainder of the year and are reiterating our 2020 guidance."

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

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