Infrastructure and defense services provider Parsons (NYSE: PSN) will be reporting results this Wednesday before market open. Here’s what to look for.
Parsons missed analysts’ revenue expectations last quarter, reporting revenues of $1.60 billion, down 7.5% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Is Parsons a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Parsons’s revenue to decline 3.5% year on year, a reversal from the 1.2% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Parsons has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Parsons’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. RTX delivered year-on-year revenue growth of 8.7%, beating analysts’ expectations by 2.7%, and CACI reported revenues up 8.5%, in line with consensus estimates. RTX traded down 7.6% following the results while CACI was up 2.8%.
Read our full analysis of RTX’s results here and CACI’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 15.1% on average over the last month. Parsons’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $74.80 (compared to the current share price of $52.16).
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