Executive Mosaic’s GovCon Index fell at least 1 percent for a second straight time Friday to post its fifth consecutive weekly loss after pharmaceutical services provider McKesson Corp. (NYSE: MCK) issued a guidance cut due to nationwide drug pricing pressure on wholesalers.
GovCon Index gainers outnumbered laggers at a 2-to-1 ratio and eight of its 11 S&P 500 companies closed green with co-listed stocks Northrop Grumman (NYSE: NOC) as the GCI’s best net performer and McKesson the biggest drag.
McKesson recorded $8.4 billion in federal unclassified prime contract revenue during the government’s 2015 fiscal year and holds medical supply and services contracts with the Department of Veterans Affairs and Defense Logistics Agency, according to Bloomberg Government.
McKesson also hit a 17-year low during the session with the guidance cut as second quarter earnings and revenue also fell below analyst expectations, while Friday volume totaled 27.48 million shares to exceed the three-month average by 15 times.
San Francisco-based McKesson also ended as the S&P 500’s largest percentage decliner and second-worst net mover in a Friday session that saw U.S. stocks sharply drop and hit volatility at around 1 p.m. Eastern time after the FBI said it will review newly-found emails related to Hillary Clinton.
The S&P 500 turned a 0.3-percent gain into a decline of 0.59 percent in one hour Friday as the GCI held lower throughout Friday’s session on McKesson’s decline.
GovCon Index- and S&P 500-listed stock L-3 Communications (NYSE: LLL) regained some ground a day after the contractor tumbled 7.37 percent on initial 2017 guidance below analyst expectations, while General Dynamics (NYSE: GD) also advanced after two straight losses after the company reported a third quarter sales decline Wednesday.
Rockwell Collins (NYSE: COL) moved green for a fourth consecutive day and is 1.19 percent within its Oct. 21 close of $84.46, the last prior to its full-year financial statement and announcement of the B/E Aerospace (Nasdaq: BEAV) acquisition.
CACI International (NYSE: CACI) fell for a second straight session after the services contractor lowered full-year earnings expectations.
Several other GovCon Index-listed services contractors are scheduled to report earnings next week after a five-day stretch that saw L-3, General Dynamics, Northrop and other large defense primes state third quarter financial results.
Next week’s schedule includes:
- Tuesday: Engility Holdings (NYSE: EGL), Harris Corp. (NYSE: HRS), ICF (Nasdaq: ICFI) and KBR (NYSE: KBR)
- Wednesday: Booz Allen Hamilton (NYSE: BAH) and ManTech International (Nasdaq: MANT)
- Thursday: Huntington Ingalls Industries (NYSE: HII) and Leidos Holdings (NYSE: LDOS)
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 79.036 | -0.830 | -1.039% |
| 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 | 21 |
| Declining GovCon Index Issues | 7 |
| Unchanged GovCon Index Issues | 2 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 124.11 | -36.39 | -22.67% |
| CACI | CACI International | 98.30 | -0.95 | -0.96% |
| MMS | Maximus | 52.17 | -0.81 | -1.53% |
| LMT | Lockheed Martin * | 248.00 | -0.53 | -0.21% |
| EGL | Engility Holdings | 28.62 | -0.47 | -1.62% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 124.11 | -36.39 | -22.67% |
| EGL | Engility Holdings | 28.62 | -0.47 | -1.62% |
| MMS | Maximus | 52.17 | -0.81 | -1.53% |
| CACI | CACI International | 98.30 | -0.95 | -0.96% |
| MANT | ManTech International | 38.45 | -0.26 | -0.67% |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| NOC | Northrop Grumman * | 228.38 | +3.03 | +1.34% |
| LLL | L-3 Communications * | 140.10 | +2.35 | +1.71% |
| GD | General Dynamics * | 151.50 | +1.37 | +0.91% |
| COL | Rockwell Collins | 83.45 | +1.30 | +1.58% |
| HON | Honeywell International * | 109.83 | +1.00 | +0.92% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| ACM | AECOM | 27.88 | +0.51 | +1.86% |
| LLL | L-3 Communications * | 140.10 | +2.35 | +1.71% |
| KBR | KBR | 15.00 | +0.25 | +1.69% |
| COL | Rockwell Collins | 83.45 | +1.30 | +1.58% |
| CSRA | CSRA * | 24.95 | +0.34 | +1.38% |
