ManTech, ICF detail what they found in their latest acquisitions
And address other market-wide talking points
A pair of the government market’s serial acquirers detailed their latest purchases to investors during respective third quarter earnings calls on Tuesday afternoon.
But those transactions were not the only items of interest to analysts, who also asked this group of executives for their explanations of other market-wide trends.
Here is a snapshot of what and how the company leaders answered.
This week started with ManTech’s announcement that it has agreed to acquire defense systems integrator and engineering company Gryphon Technologies for $350 million.
Herndon, Virginia-headquartered ManTech already has a “heavy Navy presence” as CEO Kevin Phillips put it during their call, but touted white space opportunities they see through the acquisition.
Gryphon’s work supporting the naval surface fleet and the “combination of their investments (in) systems engineering, digital engineering and data analytics, along with what we’ve invested in, I think offer a very compelling view of how we’re going to support the Navy as the shift to the Pacific continues,” Phillips told analysts.
ManTech’s other item of information for investors was lower revenue expectations for this year, now $2.55 billion-to-$2.575 billion compared to the previous range of $2.65 billion-to-$2.75 billion. That makes ManTech the latest publicly-traded government contractor within the past two weeks to reduce its sales outlook, as Leidos and Lockheed Martin for example have done.
One factor in that slightly dimmed forecast is the same megatrend many other GovCon companies have cited during this round of financial reports: supply chain disruptions and the challenge of getting everything needed to provide technology solutions for agencies.
Third quarter revenue of $637.8 million was flat compared to the same period last year.
Late into next year is when ManTech expects the supply chain picture to look better, albeit that is hard to predict — almost like the budget situation that contractors cannot do much to affect.
The U.S. withdrawal from Afghanistan and conclusions of some field sustainment programs also weighed on ManTech’s revised forecast.
A second factor in that outlook is perhaps not unique to ManTech itself, although one the company did …….