Parsons (PSN) Q3 Earnings: What To Expect

Infrastructure and defense services provider Parsons (NYSE:PSN) will be announcing earnings results tomorrow morning. Here’s what you need to know.

Parsons beat analysts’ revenue expectations by 8.2% last quarter, reporting revenues of $1.67 billion, up 23.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

Is Parsons a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Parsons’s revenue to grow 15.4% year on year to $1.64 billion, slowing from the 25.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Parsons has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 10.7% on average.

Looking at Parsons’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.2%, beating analysts’ expectations by 7%, and RTX reported revenues up 49.2%, topping estimates by 1.4%. CACI traded up 5.4% following the results while RTX’s stock price was unchanged.

Read our full analysis of CACI’s results here and RTX’s results here.

Investors in the defense contractors segment have had steady hands going into earnings, with share prices flat over the last month. Parsons is up 1.8% during the same time and is heading into earnings with an average analyst price target of $110.31 (compared to the current share price of $105.50).

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