Parsons Q4 Preview: Analysts Forecast 3.5% Revenue Decline to $1.67B, $0.79 EPS
Parsons posted $1.62 billion in Q3 revenue, down 10.4% year-on-year and 2.3% below forecasts, marking its fourth revenue miss in two years. Analysts expect Q4 revenue to decline 3.5% to $1.67 billion with adjusted earnings of $0.79 per share.
1. Q3 Financial Shortfall
Parsons delivered $1.62 billion in Q3 revenue, down 10.4% year-over-year and missing analysts’ forecasts by 2.3%, marking its fourth revenue shortfall in two years and underperforming on backlog projections.
2. Q4 Expectations
For Q4, analysts project revenue of $1.67 billion, a 3.5% decline year-over-year, and adjusted earnings of $0.79 per share, with consensus estimates largely unchanged over the past month.
3. Peer Performance and Market Sentiment
In contrast, Mercury Systems and RTX reported year-over-year revenue growth of 4.4% and 12.1% respectively, while the defense contractors segment has seen average stock gains of 8.2% over the last month; Parsons has risen 2.5% in the same period and carries an average price target of $85.18.