Infrastructure and defense services provider Parsons (NYSE: PSN) will be reporting results this Wednesday before the bell. Here’s what you need to know.
Parsons missed analysts’ revenue expectations last quarter, reporting revenues of $1.49 billion, down 4.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EBITDA guidance slightly missing analysts’ expectations.
Is Parsons a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Parsons’s revenue to grow 1.4% year on year, a reversal from the 5.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Parsons has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Parsons’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RTX delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 7.8%, and Lockheed Martin reported revenues up 10.5%, topping estimates by 3.8%. RTX traded up 9.2% following the results while Lockheed Martin was also up 13.3%.
Read our full analysis of RTX’s results here and Lockheed Martin’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Parsons is up 15.9% during the same time and is heading into earnings with an average analyst price target of $69.18 (compared to the current share price of $59.50).
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