VVX Earnings Prediction
The chart below shows how VVX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VVX sees a +1.83% change in stock price 10 days leading up to the earnings, and a -3.27% change 10 days following the report. On the earnings day itself, the stock moves by -1.13%. This data can give you a slight idea of what to expect for the next quarter's release.
VVX Key Earning Data
VVX Earnings Analysis
Positive
Quarterly Revenue Surge: Record quarterly revenue of $1.16 billion, an 11% increase year-over-year, demonstrating strong demand across all geographies.
Revenue Exceeds Guidance: Full year revenue grew 9% to $4.3 billion, exceeding the top end of guidance by approximately $47 million.
Adjusted EBITDA Growth: Adjusted EBITDA for the fourth quarter and full year was $86.2 million and $310 million, representing 5% and 6% year-over-year growth, respectively.
Net Debt Improvement: Net debt improved by $210 million year-over-year, achieving a net leverage ratio of 2.6 times, providing significant flexibility for future growth.
Backlog and Revenue Visibility: Total backlog at the end of the year was $12.5 billion, representing a 1.2 times book-to-bill ratio, indicating strong future revenue visibility.
Record Contract Wins: V2X secured record contract wins of over $5.5 billion in 2024, establishing a solid foundation for continued revenue and cash flow growth.
Indo-Pacific Revenue Growth: The company is well-positioned to support national security priorities, particularly in the Indo-Pacific region, with a 24% revenue growth in that area in 2024.
Operational Cost Savings: V2X's innovative solutions, such as the Smart Warehouse, have resulted in significant operational cost savings for the DoD, enhancing mission readiness.
Strong Liquidity Position: The company has a strong liquidity position with zero balance on its $500 million revolver, reflecting effective cash flow management and debt reduction efforts.
Revenue Guidance Growth: V2X is expected to continue its growth trajectory in 2025, with revenue guidance of $4.375 billion to $4.5 billion, representing approximately 3% growth at midpoint.
Negative
Earnings Miss Report: V2X, Inc. missed earnings expectations with reported EPS of $0.78, falling short of the expected $1.14.
EPS Growth Concerns: Despite record quarterly revenue, the adjusted EPS growth of 9% was below market expectations, indicating potential concerns about profitability.
Adjusted EBITDA Margin Analysis: The company’s adjusted EBITDA margin of 7.4% in Q4 2024, while a record, suggests limited operational efficiency improvements compared to previous periods.
Interest Expense Concerns: Interest expense for the year was $107.9 million, which could raise concerns about the company's debt management and financial health.
Modest Revenue Growth Outlook: The guidance for 2025 indicates only modest revenue growth of approximately 3%, which may not meet investor expectations for more aggressive growth.
Revenue Decline Outlook: The completion of the KC-10 and T1A programs, which contributed $80 million to revenue in 2024, suggests a potential revenue decline as these programs phase out.
Cost-Plus Contract Risks: The company’s reliance on cost-plus contracts (60% of revenue) may expose it to risks associated with cost overruns and reduced profitability compared to fixed-price contracts.
VVX FAQs
How does VVX typically perform around its earnings report dates?
VVX's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +1.83% change leading up to the report and a -3.27% change in the 10 days following the release.
Is V2X Inc (VVX) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
VVX Earning Call Sentiment
V2X, Inc. (NYSE:VVX) Q4 2024 Earnings Call Transcript
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