CHANTILLY, Va. - Parsons Corporation (NYSE:PSN) today reported a significant beat on first-quarter revenue and provided an upbeat guidance for fiscal year 2024, sending its shares up 5.7%.
The company announced a record revenue of $1.54 billion for the quarter, a substantial 31% increase from the previous year, and well above the analyst consensus of $1.36 billion. Adjusted earnings per share (EPS) also surpassed expectations at $0.70, compared to the predicted $0.61.
The robust financial performance is attributed to a 29% organic revenue growth, marking the fourth straight quarter of organic growth above 20%. Parsons' CEO Carey Smith highlighted the company's momentum with double-digit growth across all business units and major geographies.
Despite a net loss of $107 million, primarily due to a $214 million pre-tax charge related to the repurchase of 2025 convertible notes, the adjusted EBITDA rose by 56% to $141 million, and the adjusted EBITDA margin expanded by 150 basis points to 9.2%.
Looking ahead, Parsons has raised its FY2024 revenue guidance to a range of $6.1-6.4 billion, comfortably exceeding the consensus estimate of $5.96 billion. This optimistic outlook is driven by a strong book-to-bill ratio of 1.4x on record contract awards and a total backlog increase of 8% to $9.0 billion.
Smith expressed confidence in the company's future, citing a strong backlog, low recompete levels, and a robust balance sheet that will support accretive acquisitions to further drive revenue growth and margin expansion.
Investors reacted positively to the news, with the stock price appreciating 5.7% on the back of the strong guidance. The company's financial results and forward-looking statements are based on information available as of today's date.
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