Friday, May 05, 2023
DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.
Timing. As we suspected, the top line miss was more a reflection of contract timing, as some awards have been pushed out to the right. We are not concerned as we expect the business eventually will come in. We would point out continued growth in the VA mail order business, with the $20.2 million of revenue in the quarter up 18.1% y-o-y.
Mix. The lower than projected EPS was driven by two items: lower margin than we had expected, mostly due the mix of business in the quarter, and higher interest expense, mostly due to the higher interest rate environment impact on DLH’s variable rate debt.
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