Yahoo Finance Earnings To Watch: Parsons (PSN) Reports Q2 Results Tomorrow
Infrastructure and defense services provider Parsons (NYSE:PSN) will be reporting earnings tomorrow before market hours. Here's what investors should know.
Parsons beat analysts' revenue expectations by 11.5% last quarter, reporting revenues of $1.54 billion, up 30.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' backlog sales estimates and full-year revenue guidance exceeding analysts' expectations.
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 13.8% year on year to $1.54 billion, slowing from the 34.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.69 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 10.8% on average.
Looking at Parsons's peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Northrop Grumman delivered year-on-year revenue growth of 6.7%, beating analysts' expectations by 2%, and RTX reported revenues up 7.7%, topping estimates by 2.3%. Northrop Grumman traded up 8.6% following the results while RTX was also up 8.7%.
Read our full analysis of Northrop Grumman's results here and RTX's results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 10.2% on average over the last month. Parsons is down 6.8% during the same time and is heading into earnings with an average analyst price target of $90 (compared to the current share price of $74.75).
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