What happened
Shares of Vectrus Inc (VEC 2.15%) were climbing today after the government services provider reported strong first-quarter results.
As of 12:19 p.m. EDT, the stock had gained 12%.
So what
Vectrus said revenue declined 6.6% to $290.1 million because of lower activity in its Afghanistan programs; however, that figure easily beat estimates of $243 million.
Image source: Vectrus.
On the bottom line, meanwhile, earnings per share fell by a penny to $0.60, although net income increased slightly as EPS fell thanks to an increase in shares outstanding. That result also breezed past analyst estimates at $0.50.
CEO Chuck Prow said the company was "off to a fast start in 2017, with a much improved operational and financial outlook." He noted the company's Kuwait Base Operations contract was extended by a year, and that the company won all of its recomplete contracts scheduled to be awarded in 2017.
Now what
Looking ahead, Vectrus lifted its full-year guidance on the strength of the new contracts and contract extensions. The company now expects revenue of $990 million to $1.09 billion, up from $910 million to $1.01 billion, and earnings per share of $1.68 to $2.00, up from $1.53 to $1.83.
Both of those figures were well ahead of the analyst consensus at $908 million in revenue and earnings per share of $1.55. Considering the strong quarterly results, which easily beat estimates, and the increase in guidance, the jump on Vectrus shares seems well-deserved.
