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Friday, May 8, 2020
DLH Holdings Corp. (DLHC)
Post Call Commentary and Updated Models
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong VA Organic Growth in Quarter. VA related revenues in the quarter of $25.6 million were up 12.6% from the year earlier $22.7 million. For the first six months of fiscal 2020, pharmacy services revenues rose to $27.8 million from $26.4 million a year earlier, while logistics services revenues rose to $21.8 million from $19.1 million.
S3 Sequential Growth. Revenue increased to $18.7 million in the quarter, up from $17.3 million in the fiscal first quarter. We believe S3 could show more growth as the unit assists its clients during the COVID crisis. Notably, in the full three quarters since its acquisition, S3 has generated $55.8 million of revenue (average of $18.6 million/qtr), nicely above original guidance that the unit would contribute approximately…
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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.