Amentum Holdings Prepares for Q1 Earnings Release Amid Market Challenges
Chantilly, Virginia-based Amentum Holdings, Inc. (AMTM) specializes in engineering and technology solutions, tackling issues in science, security, and sustainability. With a market cap of $4.8 billion, the company caters to various sectors, including energy, space, intelligence, defense, and commercial markets. Investors are keenly waiting for its fiscal Q1 earnings results, set to be unveiled before the market opens on Wednesday, Feb. 5.
Expectations for Earnings
Analysts predict that Amentum will report a profit of $0.45 per share in its upcoming earnings. The company made its public debut just last year and has already surpassed Wall Street’s expectations. In the previous quarter, Amentum earned $0.47 per share, exceeding the consensus estimates by 27%.
Projected Growth for Fiscal 2025
Looking ahead, analysts anticipate that Amentum will report an Earnings Per Share (EPS) of $2.10 for fiscal 2025, reflecting a 4.5% increase from the reported profit of $2.01 in fiscal 2024.
Stock Performance and Recent Declines
Over the past three months, Amentum’s shares have decreased by 35.6%. This decline is in stark contrast to the S&P 500 Index’s rise of 4.2% and the Industrial Select Sector SPDR Fund’s growth of 1.8% during the same period.
An Overview of Recent Earnings
On December 17, shares of Amentum plummeted nearly 9.6% following its Q4 fiscal year 2024 earnings report. The company reported adjusted earnings of $0.47 per share along with revenues of $2.2 billion for Q4. Additionally, for fiscal year 2024, total revenues on a pro forma basis hit $13.9 billion, representing a 4% growth, with pro forma net income at $32 million. A significant highlight was the jump in the company’s backlog, which surged to $45 billion due to new contracts and additions from CMS.
Future Outlook
Amentum is optimistic about fiscal year 2025, projecting revenues between $13.8 billion and $14.2 billion, with Adjusted EBITDA anticipated to range from $1,060 million to $1,100 million.
Analysts’ Recommendations
Wall Street analysts share a moderately optimistic view on AMTM’s stock, assigning a “Moderate Buy” rating overall. Out of three analysts, one recommends a “Strong Buy,” another suggests a “Moderate Buy,” and the third advises a “Hold.”
The average price target for AMTM stands at $28.33, suggesting a potential upside of 42.4% from current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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