DLH Holdings Q3 revenue falls 47% as legacy contracts end

The one available analyst rating on the shares is "buy". The average consensus recommendation for the IT services and consulting peer group is "buy". Wall Street's median 12-month price target for DLH Holdings Corp is $10.00, about 91.6% above its July 28 closing price of $5.22.

DLH Holdings said fiscal third-quarter revenue fell 47% year over year to $44.2 million, below the $50 million consensus estimate. The company posted a net loss of $16.8 million, compared with a profit a year earlier, and reported income from operations of -$3.9 million.

The company said revenue declined year over year primarily because of legacy program transitions, as legacy programs moved to small-business set-aside contractors. DLH also said it completed indirect cost reduction actions to align its operating structure with expected near-term revenue volumes.