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ManTech International (NasdaqGS:MANT) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

ManTech International Corporation (NasdaqGS:MANT) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of $0.76/share on revenue of $619.7 million. The consensus earnings per share (EPS) of $0.76/share is based on a poll of 7 analysts and represents a growth in eps of 10.1% over the same quarter last year, when the company reported earnings of $0.69/share.

The revenue forecast of $619.7 million based on a poll of 7 analysts implies a year-over-year (YoY) growth in revenue of 7.0%. Last year the company reported $579.2 million in revenue for the quarter.

Expected to report EPS growth of 10.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $619.67 $579.18 7.0%
EPS $0.76 $0.69 10.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from ManTech International Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.65 $0.84 29.0% Beat
Q1, 2020 $0.69 $0.81 17.7% Beat
Q4, 2019 $0.60 $0.71 17.7% Beat
Q3, 2019 $0.60 $0.69 15.9% Beat
Q2, 2019 $0.57 $0.60 5.7% Beat
Q1, 2019 $0.52 $0.53 1.1% Beat
Q4, 2018 $0.52 $0.50 −3.3% Missed
Q3, 2018 $0.52 $0.55 6.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 29, 2020 $65.90 $70.75 7.4% Increase
April 29, 2020 $82.24 $74.56 −9.3% Decline
February 19, 2020 $81.61 $86.14 5.6% Increase
October 30, 2019 $70.08 $79.18 13.0% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.55, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.55 implies a 0.5% chance of earnings manipulation.

Fundamentals And Technical Analysis

ManTech International Corporation is currently trading at $62.32/share, down −6.1% for the day. The company is trading at approximately 66.5% of its 52-week high of $93.99/share. The company’s stock price is down −11.9% since the last earnings report and down −9.4% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 29.17 suggests the company is trading in technically oversold territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:MANT Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.77 and a forward P/E multiple of 21.30.

ManTech International Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.64. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $62.32
P/E Ratio 19.8x
P/E Ratio (Fwd) 21.3x
PEG Ratio 0.5
Total Debt / Total Capital 4.9%
Levered Free Cash Flow $124.2 million
EV / EBITDA 11.9x

Finbox

ManTech International Corporation is a mid-cap stock with a market capitalization of $2.677 billion and a total enterprise value of $2.785 billion. The company operates in the Information Technology sector and the IT Services industry.

ManTech International Corporation provides technology solutions and services for U.S. defense, intelligence community, and federal civilian agencies worldwide. The company offers cyber solutions and services, including security operations, threat intelligence, incident response and forensics, boundary defense, security systems engineering, infrastructure security, and computer forensics and exploitation. It also provides solutions involving hardware and software to support the technology infrastructure for various applications, including IT service management, help desk, data center consolidation, enterprise architecture, mobile computing and device management, network operations and infrastructure, virtualization/cloud computing and migration, network and database administration, enterprise systems development and management, infrastructure as a managed service, and data collection and analytics; and designs, develops, integrates, operates, and sustains software applications and systems. In addition, the company offers professional and technical solutions, and mission support services; command-and-control infrastructure, intelligence, surveillance and reconnaissance platforms and sensors, and data services; and vulnerability assessment, insider threat protection, exposure analysis, secrecy architecture design, security policy development and implementation, lifecycle acquisition program security, anti-tamper, export compliance support, foreign disclosure, system security engineering, security awareness and training, security support services, and technical certification and accreditation services. Further, it provides requirement analysis, development, and management; systems development and integration; enterprise architecture and concept of operations; systems engineering and technical assistance; test and evaluation; training; and supply chain management and logistics services. The company was founded in 1968 and is headquartered in Herndon, Virginia.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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