We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Navigant (NCI) Down 4.8% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Navigant (NCI) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Navigant due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Navigant Lags Q4 Earnings and Revenues Estimates
Navigant Consulting fourth-quarter 2018 adjusted earnings per share (from continuing operations) of 10 cents lagged the consensus mark by 3 cents but came ahead of the year-ago figure by a penny. The bottom line benefited from lower net interest costs and lower share count, which offset lower operating profitability.
Total revenues of $193.21 million increased 9.1% from the prior-year quarter. Revenues before reimbursements (RBR) of $174.63 million missed estimates by $0.3 million but improved 11.5% year over year. The top line benefitted from robust performance of the Health System Solutions (“HSS”) joint venture and continued solid demand in the Energy segment, which partially offset, slower conversion of engagements in Healthcare consulting.
Revenues by Segments
Energy segment’sRBR increased 12.7% year over year to $34.6 millionon the back of strong demand across the segment.
Financial Services Advisory and Compliance’s (“FSAC”) RBR increased 7.1% year over year to $34.5 million. The segment benefitted from the ramp-up of the new managed services engagement, which began in the third quarter of 2018.
Healthcare segment’s RBR increased 12.5% year over year to $105.5 million, driven by contribution from the HSS joint venture with Baptist Health South Florida, which partially offset prolonged softness in certain areas of Healthcare consulting.
EBITDA Performance
Adjusted EBITDA from continuing operations in the fourth quarter was $12.8 million compared with $15.2 million in the prior-year quarter. The decline was due to higher-than-usual year-end pause in the FSAC segment, weak results in Healthcare consulting, and higher general and administrative costs.
Balance Sheet and Cash Flow
Navigant exited fourth-quarter 2018 with cash and cash equivalents of $206.92 million compared with $277.43 million at the end of the prior quarter.
The company used $5.8 million of net cash in operating activities in the reported quarter. Adjusted free cash flow was $9.62 million.
During fourth-quarter 2018, Navigant repurchased 2.5 million shares at aggregate costs of $57.1 million and average price of $22.83 per share.
2019 Guidance
Navigant provided its guidance for 2019. It expects revenues to be $810-$840 million. RBR is expected to be between $735 million and $765 million.
Adjusted earnings per share are expected to be between 85 cents and $1.00.The Zacks Consensus Estimate of 95 cents lies within the currently guided range.
Adjusted EBITDA is anticipated to be $70-$80 million. Adjusted free cash flow is anticipated between $43 million and $53 million. Capital expenditure is estimated to be around $20 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -60% due to these changes.
VGM Scores
At this time, Navigant has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Navigant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Image: Bigstock
Navigant (NCI) Down 4.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Navigant (NCI) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Navigant due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Navigant Lags Q4 Earnings and Revenues Estimates
Navigant Consulting fourth-quarter 2018 adjusted earnings per share (from continuing operations) of 10 cents lagged the consensus mark by 3 cents but came ahead of the year-ago figure by a penny. The bottom line benefited from lower net interest costs and lower share count, which offset lower operating profitability.
Total revenues of $193.21 million increased 9.1% from the prior-year quarter. Revenues before reimbursements (RBR) of $174.63 million missed estimates by $0.3 million but improved 11.5% year over year. The top line benefitted from robust performance of the Health System Solutions (“HSS”) joint venture and continued solid demand in the Energy segment, which partially offset, slower conversion of engagements in Healthcare consulting.
Revenues by Segments
Energy segment’sRBR increased 12.7% year over year to $34.6 millionon the back of strong demand across the segment.
Financial Services Advisory and Compliance’s (“FSAC”) RBR increased 7.1% year over year to $34.5 million. The segment benefitted from the ramp-up of the new managed services engagement, which began in the third quarter of 2018.
Healthcare segment’s RBR increased 12.5% year over year to $105.5 million, driven by contribution from the HSS joint venture with Baptist Health South Florida, which partially offset prolonged softness in certain areas of Healthcare consulting.
EBITDA Performance
Adjusted EBITDA from continuing operations in the fourth quarter was $12.8 million compared with $15.2 million in the prior-year quarter. The decline was due to higher-than-usual year-end pause in the FSAC segment, weak results in Healthcare consulting, and higher general and administrative costs.
Balance Sheet and Cash Flow
Navigant exited fourth-quarter 2018 with cash and cash equivalents of $206.92 million compared with $277.43 million at the end of the prior quarter.
The company used $5.8 million of net cash in operating activities in the reported quarter. Adjusted free cash flow was $9.62 million.
During fourth-quarter 2018, Navigant repurchased 2.5 million shares at aggregate costs of $57.1 million and average price of $22.83 per share.
2019 Guidance
Navigant provided its guidance for 2019. It expects revenues to be $810-$840 million. RBR is expected to be between $735 million and $765 million.
Adjusted earnings per share are expected to be between 85 cents and $1.00.The Zacks Consensus Estimate of 95 cents lies within the currently guided range.
Adjusted EBITDA is anticipated to be $70-$80 million. Adjusted free cash flow is anticipated between $43 million and $53 million. Capital expenditure is estimated to be around $20 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -60% due to these changes.
VGM Scores
At this time, Navigant has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Navigant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.