Perspecta (PRSP) Tops Q2 EPS by 3c, Revenues Beat; Raises FY21 EPS/Revenue Guidance Above Consensus

Perspecta (NYSE: PRSP) reported Q2 EPS of $0.53, $0.03 better than the analyst estimate of $0.50. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.11 billion.

• Revenue of $1.14 billion
• Diluted earnings per share of $0.10; adjusted diluted earnings per share of $0.53
• Operating cash flow of $164 million
• Bookings of $1.8 billion (Q2 book-to-bill ratio of 1.6x; trailing-twelve-month book-to-bill ratio excluding NGEN SMIT impact of 1.6x)
• Raising fiscal year 2021 guidance

"Since our inception, we have consistently achieved solid execution across the enterprise, and this quarter is no exception. Once again, we delivered on our revenue, adjusted diluted earnings per share and free cash flow conversion expectations," said Mac Curtis, chairman and chief executive officer of Perspecta. "We continue to accomplish these strong results, quarter after quarter, because of our dedication and commitment to mission execution and operational excellence. With strategic awards and significant milestones in the areas of cyber, 5G and cloud migration, we remain steadfast in supporting our customers during this unprecedented time."

GUIDANCE:

Perspecta sees FY2021 EPS of $2.03-$2.11, versus the consensus of $1.96. Perspecta sees FY2021 revenue of $4.41-4.56 billion, versus the consensus of $4.38 billion.

John Kavanaugh, chief financial officer of Perspecta, commented, "We are pleased with the solid performance we delivered in the first half of FY2021. We continue to demonstrate our ability to execute and deliver on our commitments and, as a result, we are raising guidance for the fiscal year."

The fourth quarter of fiscal year 2020 marked the beginning of the COVID-19 pandemic in the United States, and the pandemic has continued through the first quarter of fiscal year 2021. 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, and the company has maintained its workforce at near full capacity. For the fiscal quarter ended October 2, 2020, the overall impact of the COVID-19 pandemic on our results of operations was approximately $18 million lower revenue, $5 million lower adjusted EBITDA and a year-to-date liquidity benefit of $40 million due to a deferral of payroll tax payments afforded by the Coronavirus Aid, Relief and Economic Security Act. We continue to assess further possible implications to our business, 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 adjusted EBITDA.

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

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