Infrastructure and defense services provider Parsons (NYSE:PSN) will be announcing earnings results this Wednesday before the bell. Here’s what to expect.
Parsons missed analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $1.62 billion, down 10.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a miss of analysts’ backlog estimates.
Is Parsons a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Parsons’s revenue to decline 3.5% year on year to $1.67 billion, a reversal from the 16.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Parsons has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Parsons’s peers in the defense contractors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 4.4%, beating analysts’ expectations by 10.4%, and RTX reported revenues up 12.1%, topping estimates by 7%. Mercury Systems traded down 22.3% following the results while RTX was up 2.7%.
Read our full analysis of Mercury Systems’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 8.2% on average over the last month. Parsons is up 2.5% during the same time and is heading into earnings with an average analyst price target of $85.18 (compared to the current share price of $69.15).
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