Thursday, August 6, 2020
DLH Holdings Corp. (DLHC)
3Q Revenues Light, But EPS On Target
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers 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.
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3Q20 Results. Revenue came in at $51.5 million, up from $36.7 million a year ago when S3 was only included for three weeks, but down sequentially and the lowest level since S3 was fully incorporated last year. We had projected $55 million and consensus was $55.7 million. EPS was $0.16, up from $0.06 y-o-y, although last year’s results were impacted by $1.2 million of acquisition costs. We were at $0.15 and consensus was $0.16. EBITDA was $5.5 million versus $2.6 million in the prior year period.
Margin Improvement. DLH reported solid margin improvement, in spite of the lower than projected revenue. Operating margin improved to 7.4% from 4.4% y-o-y. EBITDA margin rose to 10.7% from 6.7% while net margin improved to 4.1% in the fiscal third quarter up from …
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