Friday, April 08, 2022
Vectrus (VEC)
Refining Model and Budget Update
Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Refining Model. We had an opportunity to speak with Vectrus management recently regarding our model for 2022. While we believe our annual numbers to be reasonable, we assumed a more historical split between first half and second half results than is likely to happen in 2022 as the Kwajalein and Ft. Benning contracts results in a more back weighted year. As a result, we have refined our model to reflect this.
Updated Guidance. Our full year 2022 estimates remain unchanged: $1.86 billion of revenue, $86 million of adjusted EBITDA, EPS of $4.07, and adjusted EPS of $4.74. The quarterly cadence does change as we moved $38 million of revenue from the first half of the year into the second half. This results in 1Q22 revenue of $427 now, down from $445 million, and EPS of $0.60, down from a prior $0.73 …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
