Parsons ahead of earnings: market expects flat year-on-year revenue

what happened

Parsons, a provider of infrastructure and defense services, will report quarterly results on Wednesday morning, according to StockStory. Last quarter the company posted revenue of $1.58 billion, flat year on year, below analysts' forecasts. Full-year revenue and EBITDA guidance also fell well short of expectations.

The consensus expects revenue this quarter to stay flat year on year, an improvement on the 10.4% decline recorded a year earlier. Analysts covering the company have mostly kept their estimates unchanged over the past 30 days. Among defense contractors, RTX grew revenue 11.1% and beat expectations by 3.3%, while CACI rose 8.2%, falling short of estimates by 1.4%. Both stocks barely moved after their results.

Over the last month, defense contractor shares fell 4.2% on average, while Parsons rose 20.1%. The average analyst price target is $58.36, against a current share price of $49.97.

why it matters

For markets, the forward outlook matters as much as the reported quarter. The company cut its full-year targets last time, so the share reaction will likely depend on how management frames the outlook. The report will also offer a read on demand for defense and infrastructure services amid shifting macro themes.

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