- Parsons has revised its full-year revenue forecast to between $6.48 billion and $6.68 billion, down from the previous estimate of $7.0 billion to $7.5 billion.
- The company anticipates cash flow from operations to range from $400 million to $440 million, compared to the earlier forecast of $420 million to $480 million.
- For the second quarter, Parsons reported revenue of $1.58 billion, a decrease of 5.2% year-over-year, slightly below the estimated $1.6 billion.
- The adjusted EBITDA for the second quarter was $149.1 million, a slight decline of 0.7% year-over-year, yet it exceeded the estimate of $144.7 million.
- Earnings per share (EPS) stood at 50 cents, down from 63 cents in the same period last year.
- Adjusted EPS was 78 cents, a decrease from the previous year’s 84 cents but above the estimate of 73 cents.
- The company’s backlog increased by 1.3% year-over-year to $8.94 billion, although it did not meet the $9.07 billion estimate.
- Analyst ratings for Parsons include 7 buy recommendations and 4 holds, with no sell ratings.
Parsons Corp on Smartkarma
Analyst coverage of Parsons Corp on Smartkarma has been positive, with insights from Baptista Research shedding light on the company’s recent financial performance and strategic moves. In one report titled “Parsons Corporation Surges With Record Backlog & $55 Billion Opportunity Pipeline; A Potential Game Changer?” by Baptista Research, Parsons Corporation’s first-quarter 2025 financial results displayed strong performance amid challenges, showcasing record highs in key metrics like total revenue and adjusted EBITDA. Despite facing difficulties related to a federal contract operating at lower volume due to external factors, the company’s underlying business strength is evident.
Another report by Baptista Research, titled “Parsons Corporation: Expansion of Cyber & Electronic Warfare Capabilities to Boost Pivotal Growth & Revenue!”, highlighted Parsons Corporation’s financial outcomes for the fourth quarter and fiscal year 2024. The report noted the company’s record revenues supported by impressive year-over-year organic growth and a substantial increase in adjusted EBITDA. While there were challenges to address, such as modest EBITDA margin expansion, the overall picture points towards growth potential and opportunities for operational improvement for Parsons Corp.
A look at Parsons Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Parsons Corp seems to have a positive long-term outlook, especially in terms of growth and momentum. With a high score of 5 for Growth, the company is expected to expand and develop over time, indicating strong potential for increasing revenues and market presence. Additionally, Momentum also scored a 5, suggesting that Parsons Corp is likely to continue performing well in the market in the near future, building on its current success.
While Value and Resilience scored moderately at 3, indicating average performance in these areas, the low score of 1 for Dividend suggests that Parsons Corp may not be focusing on distributing profits to shareholders through dividends. Overall, given the company’s focus on technology-driven solutions in defense, intelligence, and critical infrastructure markets, along with its global reach, Parsons Corp appears well-positioned for sustained growth and success in the years to come.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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