Tuesday, February 19, 2019

DLH Holdings (DLHC)

Call Confirms Solid Quarter, Moving Forward While Waiting on VA COMP.

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offer services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

RATING: OUTPERFORM

• Solid
  Operating Performance. On the earnings call and in our 1×1 with management, the Company re-iterated the solid performance in 1Q19. DLH continues to garner additional value add business from its core VA and HHS customers.
• VA COMP
  Waiting Game. Nothing new on the VA COMP re-compete as its remains in a “quiet period.”  This contract represents nearly 40% of overall revenue. We believe DLH is well positioned to capture at least part of the contract in the re-compete. We continue to expect the re-compete to have minimal impact on DLH’s fiscal 2019 operating results…  
  
  
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