Executive Mosaic’s GovCon Index posted its biggest percentage decline in four weeks Thursday after Raytheon (NYSE: RTN) and L-3 Communications (NYSE: RTN) posted guidance ranges below Wall Street analysts’ expectations with other large defense primes also the GCI’s largest drags.
GovCon Index decliners outnumbered advancers at a 4-to-1 ratio and McKesson Corp. (NYSE: MCK) was the GCI’s lone S&P 500 company to gain, while the latter U.S. stock bellwether closed slightly lower on a 2-percent decline in real estate stocks as investors weighed another batch of earnings statements and economic data.
Raytheon tumbled to second-lowest for GCI net performers after its boost to full-year earnings guidance fell short of Wall Street’s expectations as the weapons maker’s increased revenue guidance for 2016 exceeded analyst estimates.
L-3 ended as the GCI’s lowest net mover and traded at a one-month low during the session after the defense contractor’s initial 2017 guidance came in below analyst estimates even as third quarter earnings exceeded Wall Street’s expectations.
L-3 also said third quarter revenue fell year-over-year on declines in its aerospace systems segment, while sales for Raytheon and L-3 both missed the consensus Wall Street outlook (click here for all the numbers from Raytheon and L-3’s third quarter financial statements).
Fellow defense primes Northrop Grumman (NYSE: NOC), Harris Corp. (NYSE: HRS) and Boeing (NYSE: BA) shed at least $2.00 each to round out the GCI’s five lowest net performers.
CACI International (NYSE: CACI) fell 1.68 percent and also hit a one-month low during Thursday trade after the government services contractor cut its earnings outlook for the 2017 fiscal year started Oct. 1.
McKesson led all GovCon Index gainers as the S&P healthcare index added nearly a half-percent before the pharmaceutical services provider states second quarter financial results post-close.
Rockwell Collins (NYSE: COL) advanced for a third straight session since its announcements of fiscal year 2017 expectations and the B/E Aerospace (Nasdaq: BEAV) acquisition.
Investors also gauged data that showed people who applied for unemployment benefits last week fell by 3, 000 to 258, 000 and durable good orders in September fell on lower demand for military hardware and computers, MarketWatch reported.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 79.866 | -1.047 | -1.294% |
| S&P 500 | 2, 133.04 | -6.39 | -0.30% |
| Dow Jones Industrial Average | 18, 169.68 | -29.65 | -0.16% |
| NASDAQ | 5, 215.97 | -34.29 | -0.65% |
| Advancing GovCon Index Issues | 7 |
| Declining GovCon Index Issues | 23 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| LLL | L-3 Communications * | 137.75 | -10.96 | -7.37% |
| RTN | Raytheon * | 136.28 | -5.00 | -3.54% |
| NOC | Northrop Grumman * | 225.35 | -2.70 | -1.18% |
| HRS | Harris Corp. * | 88.98 | -2.40 | -2.63% |
| BA | Boeing * | 143.31 | -2.23 | -1.53% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| LLL | L-3 Communications * | 137.75 | -10.96 | -7.37% |
| RTN | Raytheon * | 136.28 | -5.00 | -3.54% |
| CSRA | CSRA * | 24.61 | -0.69 | -2.73% |
| HRS | Harris Corp. * | 88.98 | -2.40 | -2.63% |
| EGL | Engility Holdings | 29.09 | -0.76 | -2.55% |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 160.50 | +1.93 | +1.22% |
| COL | Rockwell Collins | 82.15 | +0.75 | +0.92% |
| ICFI | ICF | 46.40 | +0.35 | +0.76% |
| CUB | Cubic Corp. | 41.90 | +0.25 | +0.60% |
| OA | Orbital ATK | 74.92 | +0.13 | +0.17% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 160.50 | +1.93 | +1.22% |
| COL | Rockwell Collins | 82.15 | +0.75 | +0.92% |
| ICFI | ICF | 46.40 | +0.35 | +0.76% |
| CAE | CAE | 14.01 | +0.09 | +0.65% |
| CUB | Cubic Corp. | 41.90 | +0.25 | +0.60% |
