Vectrus (NYSE: VEC) has lifted full-year earnings and revenue guidance on improved outlooks in cash flow for the 2016 second half and expectations of extra payments on debt.
The Colorado Springs-based government communications services contractor now expects earnings per share in the $2.07-$2.32 range versus the previous $2.02-$2.31 range with revenue of $1.18 billion-$1.2 billion compared to the prior $1.15 billion-$1.19 billion forecast.
Second quarter earnings came in at 55 cents per share to fall short of analysts forecasts of 57 cents and net income rose a nominal half-percent from the prior year period to $6.05 million.
Revenue also fell by 0.52 percent year-over-year to $307.89 million on declines in Afghanistan, U.S. and European programs that were partially offset by increases in Middle East activity.
Wall Street analysts expected Vectrus to report $295.64 million in second quarter sales.
Vectrus said year-to-date free cash flow totaled $19 million in a reversal from the $0.9 million stated for the first six months in 2015 and lifted its 2016 cash flow forecast to $28 million-$32 million from the prior $22 million-$30 million range.
The company made a $2 million second quarter payment on debt from money borrowed to pay former parent Exelis when the spinoff took place in September 2014 and expects to pay down $8 million-$10 million for 2016.
Long-term debt as of July 1 was $82.97 million.
As of Tuesday’s close, shares in Vectrus are up 11.84 percent from the year’s start and have risen 14.7 percent over 12 months.
