Key Highlights

  • Consensus EPS of 1.02 compares with second-quarter diluted EPS of 0.35, against 0.67 a year earlier.
  • Consensus revenue of USD 1.01 billion compares with second-quarter revenues of USD 1,007.0 million, against USD 1,020.6 million.
  • Gross profit was USD 284.6 million against USD 293.3 million, and gross margin was 28.3%, 40 basis points lower.
  • Operating income was USD 41.1 million against USD 59.6 million, and net income was USD 14.2 million.

Everforth (NYSE:EFOR) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.02 on revenue of USD 1.01 billion, and the company has a market capitalization of USD 1.71 billion.

Everforth provides IT solutions through a Commercial Segment and a Federal Government Segment. Second-quarter revenues were USD 1,007.0 million against USD 1,020.6 million, and net income was USD 14.2 million against USD 29.3 million.

Estimates Against the Last Reported Quarter

The EPS estimate of 1.02 is above the second-quarter diluted EPS of 0.35, which compared with 0.67 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 1.01 billion is above the USD 1,007.0 million reported, which compared with USD 1,020.6 million.

Basic EPS was 0.35 against 0.67. Cost of goods and services sold was USD 722.4 million against USD 727.3 million.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing states that consolidated gross profit declined 3.0% year over year and that gross margin of 28.3% was a compression of 40 basis points. It states that Federal Government Segment gross margin was up 40 basis points, driven by efforts to improve profitability across the contract portfolio.

Gross Margin, SG&A and Operating Income

SG&A expenses were USD 226.2 million against USD 216.8 million, and the second quarter included USD 9.8 million in acquisition, integration and strategic planning expenses against USD 8.3 million. Operating income was USD 41.1 million against USD 59.6 million.

Interest expense was USD 20.4 million against USD 18.2 million, and income before income taxes was USD 20.7 million against USD 41.4 million. Gross profit was USD 284.6 million against USD 293.3 million.

Cash, Borrowings and Share Repurchases

For six months, proceeds from long-term debt were USD 370.0 million against USD 265.0 million, and principal payments of long-term debt were USD 100.8 million against USD 87.5 million. Repurchases of common stock were USD 50.5 million against USD 59.9 million.

Net cash provided by financing activities was USD 220.3 million against USD 116.3 million. Cash and cash equivalents were USD 152.9 million against USD 138.9 million a year earlier and USD 161.2 million at the start of the year. Revenues were USD 1,007.0 million against USD 1,020.6 million, and net income was USD 14.2 million against USD 29.3 million, with operating income of USD 41.1 million. The estimates table lists a market capitalization of USD 1.71 billion.

Figures to Follow in the Release

Reported EPS against 1.02 and revenues against USD 1.01 billion are the headline comparisons. Other markers are gross margin, SG&A expenses and the Federal Government Segment.