PSN Earnings Prediction
The chart below shows how PSN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PSN sees a -5.33% change in stock price 10 days leading up to the earnings, and a +2.59% change 10 days following the report. On the earnings day itself, the stock moves by +4.88%. This data can give you a slight idea of what to expect for the next quarter's release.
PSN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.81B
27.60%
8.36%
Gross Margin
19.90%
-4.05%
-5.42%
Operating Margin
6.54%
18.05%
-16.69%
Net Margin
4.73%
12.09%
-2.07%
EPS
0.65
58.54%
3.17%
No Data Available
PSN Earnings Analysis
Parsons Corporation Corporation (PSN.N) Earnings Conference Call
Positive
Record Revenue Growth: 1. Record Revenue Achievement: Parsons Corporation reported a record revenue of $1.8 billion for Q3 2024, marking a 28% increase year-over-year and a 26% organic growth, demonstrating strong operational performance.
Adjusted EBITDA Surge: 2. Significant Adjusted EBITDA Growth: Adjusted EBITDA for Q3 2024 reached $167 million, reflecting a 31% increase compared to the previous year, with an adjusted EBITDA margin expansion of 20 basis points to 9.2%.
Operating Cash Flow Surge: 3. Strong Operating Cash Flow: The company generated $299 million in operating cash flow during Q3 2024, a 46% increase from $204 million in Q3 2023, contributing to a record trailing 12-month cash flow of $587 million, up 91% year-over-year.
Contract Award Surge: 4. Robust Contract Awards: Parsons secured four single-award contracts exceeding $100 million each in Q3 2024, leading to a book-to-bill ratio of 1.0 times and a 24% increase in contract award activity compared to the prior year.
Strategic Acquisitions Overview: 5. Strategic Acquisitions: The acquisition of BlackSignal Technology for $204 million enhances Parsons' capabilities in digital signal processing and cybersecurity, while the upcoming acquisition of BCC Engineering for $230 million is expected to strengthen its infrastructure leadership in the Southeastern U.S.
Negative
Critical Infrastructure Margin Decline: 1. Declining Critical Infrastructure Margins: The adjusted EBITDA for the Critical Infrastructure segment decreased by $16 million, resulting in a margin drop from 9.8% to 6.7% year-over-year, primarily due to a $23.5 million write-down on a legacy program.
Write-Down Impact Analysis: 2. Increased Write-Downs: The company reported a $23.5 million write-down in the Critical Infrastructure segment, which significantly impacted overall segment performance and reflects ongoing challenges with legacy contracts.
Unchanged Unbooked Pipeline: 3. Stagnant Unbooked Pipeline: The unbooked pipeline remained relatively unchanged at $13 billion, raising concerns about future growth potential despite recent contract wins.
Revenue Loss Forecast: 4. Potential Revenue Loss from Recompetes: The company anticipates a typical run-off of programs amounting to $80 million to $100 million, which could negatively impact revenue in the upcoming year.
Federal Contracts Uncertainty: 5. Uncertainty in Federal Solutions Contracts: There is uncertainty regarding the exercise of the second option period for a significant confidential contract, which could affect future revenue streams if not renewed.
PSN FAQs
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PSN Earning Call Sentiment
Parsons Corporation (PSN) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PSN.N
-2.08%Positive
The earnings call indicates strong financial performance with a 28% revenue increase and 31% EBITDA growth. However, concerns about acquisition risks and legacy program write-downs exist. Positive factors include increased revenue guidance, strategic acquisitions, and strong cash flow. The Q&A highlights confidence in continued growth, with a high win rate and geographic expansion potential. Despite some risks, the overall sentiment is positive, driven by robust financial metrics and optimistic guidance.
