Engility Holdings (EGL) Tops Q3 EPS by 26c; Raises EPS Outlook

Engility Holdings (NYSE: EGL) reported Q3 EPS of $0.86, $0.26 better than the analyst estimate of $0.60. Revenue for the quarter came in at $345 million versus the consensus estimate of $352.71 million.

Engility Holdings sees FY2014 EPS of $2.90-$3.10, versus prior guidance of $2.70$2.90 and the consensus of $2.29. Engility Holdings maintained FY2014 revenue of $1.35-1.45 billion, versus the consensus of $1.41 billion.

“As anticipated, we experienced strong award activity to start the second half of 2014 and achieved a solid sequential and year-over-year increase in our book-to-bill ratio. We won many new awards in the quarter and continue to increase our competitiveness in the market,” said Tony Smeraglinolo, President and CEO of Engility. “We are pleased with our customers’ positive response to our business model and the significant improvements we have made to our business development processes. We believe we are well positioned for continued success throughout the remainder of 2014, which will provide us with positive momentum as we enter 2015.”

“As separately announced, we are extremely excited about our definitive agreement to acquire TASC. This transaction is strongly aligned with our growth and capital allocation strategies. It further diversifies and balances our portfolio, allows us to gain access to new strategic customers in enduring markets, expands our capabilities, and adds scale to our business. TASC will build upon our successful acquisition of DRC, which we completed in January 2014. DRC continues to meet its financial targets and our integration efforts remain on track. We will leverage the experiences we gained from the DRC acquisition to help ensure we maximize the strategic and financial benefits provided by TASC’s highly complementary business. We expect that the strong free cash flow generated by the combined company will enable us to rapidly pay down the debt of the combined companies.”

For earnings history and earnings-related data on Engility Holdings (EGL) click here.

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