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Parsons (PSN) Secures Role in the $1.66B Honolulu Rail Project
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Parsons Corporation (PSN - Free Report) has been selected as the lead designer for the Honolulu Authority for Rapid Transportation’s City Center Guideway and Stations Project.
Parsons, who acts as a subcontractor to Tutor Perini Corporation (TPC - Free Report) in the project, leads the industry in rail and vehicle design with an innovative approach. The company’s commitment to excellence ensures the delivery of advanced solutions that meet the evolving needs of customers.
The $1.66 billion project is scheduled to be finished by 2030 and will include the design and construction of six railway stations and three miles of elevated rail guideways. This guideway will begin east of the existing Middle Street Transit Center Station and end at the Civic Center Station, which will be located just east of downtown Honolulu.
Continuous Contract Wins: A Boon for PSN
The company has been successful in capturing multiple contract wins. The company secured two single-award contracts totaling more than $100 million during the second quarter of 2024. The company’s backlog stood at $8.8 billion at the end of the quarter, with a book-to-bill ratio of 0.9x.
Parsons reported record financial results for the second quarter of 2024, marking a significant milestone since its IPO. The company reached record revenues of $1.7 billion, marking a 23% year-over-year increase. This growth was primarily fueled by a robust 22% organic growth, driven by the continued progress on recent contract awards and the successful execution of the company's backlog programs. Notably, there was a significant expansion in critical infrastructure protection, cyber, and urban development markets. Strong revenue growth, improved operational efficiency, cost management, and strategic acquisitions contributed to the significant increase in both GAAP and adjusted earnings per share (EPS) for Parsons in the second quarter of 2024.
Given the company’s solid second-quarter performance and promising future, Parsons increased its 2024 revenues, adjusted EBITDA, and cash flow from operations guidance during the second-quarter earnings call.
Recent PSN Stock Performance
Parsons shares have gained 51.1% year to date, outperforming the Zacks Technology Services industry’s and the Zacks Business Services sector’s rise of 18.7% and 9%, respectively.
Image Source: Zacks Investment Research
Meanwhile, over the past 30 days, analysts have increased their estimates for both the current and next year by 6.8% and 5.4% to $3.13 and $3.51 per share, respectively. These estimates indicate expected year-over-year growth rates of 28.8% and 12.1%, respectively. The positive estimate revision depicts analysts’ optimism over the company’s prospects.
APP has a trailing four-quarter earnings surprise of 21.1%, on average. The Zacks Consensus Estimate for APP’s current financial-year sales and EPS implies growth of 35.1% and 255.1%, respectively, from the year-ago levels.
BYRN has a trailing four-quarter earnings surprise of 324.1%, on average. The Zacks Consensus Estimate for BYRN’s current financial-year sales and EPS implies growth of 68.1% and 88.9%, respectively, from the year-ago levels.
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Parsons (PSN) Secures Role in the $1.66B Honolulu Rail Project
Parsons Corporation (PSN - Free Report) has been selected as the lead designer for the Honolulu Authority for Rapid Transportation’s City Center Guideway and Stations Project.
Parsons, who acts as a subcontractor to Tutor Perini Corporation (TPC - Free Report) in the project, leads the industry in rail and vehicle design with an innovative approach. The company’s commitment to excellence ensures the delivery of advanced solutions that meet the evolving needs of customers.
The $1.66 billion project is scheduled to be finished by 2030 and will include the design and construction of six railway stations and three miles of elevated rail guideways. This guideway will begin east of the existing Middle Street Transit Center Station and end at the Civic Center Station, which will be located just east of downtown Honolulu.
Continuous Contract Wins: A Boon for PSN
The company has been successful in capturing multiple contract wins. The company secured two single-award contracts totaling more than $100 million during the second quarter of 2024. The company’s backlog stood at $8.8 billion at the end of the quarter, with a book-to-bill ratio of 0.9x.
Parsons reported record financial results for the second quarter of 2024, marking a significant milestone since its IPO. The company reached record revenues of $1.7 billion, marking a 23% year-over-year increase. This growth was primarily fueled by a robust 22% organic growth, driven by the continued progress on recent contract awards and the successful execution of the company's backlog programs. Notably, there was a significant expansion in critical infrastructure protection, cyber, and urban development markets. Strong revenue growth, improved operational efficiency, cost management, and strategic acquisitions contributed to the significant increase in both GAAP and adjusted earnings per share (EPS) for Parsons in the second quarter of 2024.
Given the company’s solid second-quarter performance and promising future, Parsons increased its 2024 revenues, adjusted EBITDA, and cash flow from operations guidance during the second-quarter earnings call.
Recent PSN Stock Performance
Parsons shares have gained 51.1% year to date, outperforming the Zacks Technology Services industry’s and the Zacks Business Services sector’s rise of 18.7% and 9%, respectively.
Image Source: Zacks Investment Research
Meanwhile, over the past 30 days, analysts have increased their estimates for both the current and next year by 6.8% and 5.4% to $3.13 and $3.51 per share, respectively. These estimates indicate expected year-over-year growth rates of 28.8% and 12.1%, respectively. The positive estimate revision depicts analysts’ optimism over the company’s prospects.
Zacks Rank and Other Stocks to Consider
Parsons currently carries Zacks Rank #2 (Buy).
A couple of other top-ranked stocks are AppLovin Corporation (APP - Free Report) and Byrna Technologies Inc. (BYRN - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP has a trailing four-quarter earnings surprise of 21.1%, on average. The Zacks Consensus Estimate for APP’s current financial-year sales and EPS implies growth of 35.1% and 255.1%, respectively, from the year-ago levels.
BYRN has a trailing four-quarter earnings surprise of 324.1%, on average. The Zacks Consensus Estimate for BYRN’s current financial-year sales and EPS implies growth of 68.1% and 88.9%, respectively, from the year-ago levels.