ManTech International Corporation

ManTech International Corporation (MANT - Snapshot Report), which provides solutions to the national security sector, is bullish about 2009 as it expects earnings growth between 14% to 20%. The company has surprised on estimates 3 out of the last 4 quarters. ManTech has a PEG ratio of just 0.8.

Company Description

ManTech International provides technical service solutions to the federal government, especially for national security programs for the Intelligence Community.

The company offers expertise in systems engineering, software development services, cyber security, intelligence operations and information warfare support, global logistics and supply chain management.

ManTech supports the telecommunications systems that are being used in Iraqi operations and builds and maintains secure databases that track terrorists.

ManTech Continues to Grow By Acquisition

On Mar 16, the company announced it had closed on the acquisition of DDK Technology Group, Inc., a provider of cyber security to the Department of Defense, especially to the Naval Criminal Investigative Service (NCIS).

DDK Technology was privately held and specialized in cyber intelligence analysis, computer and network forensics and counterterrorism/counterintelligence analysis. The acquisition expands ManTech's cyber security capabilities.

ManTech expects the company to generate approximately $14 million in revenue in 2009 and forecasts that it will be accretive to its earnings in 2009. The financial terms were not disclosed. ManTech paid for the acquisition from available cash and borrowings from its senior secured credit facility.

Stock Hit After President and COO Resigns

On Mar 3, after the market close, ManTech announced that Robert Coleman, President and COO, was resigning from the company effective June 1. He will apparently remain a member of ManTech's Board of Directors.

Coleman held the position for 4 years. The company gave no indication for the reason for the departure which spooked investors.

The stock fell 10.5% during trading on Mar 4 on the news.

Fourth Quarter Revenue Grows 17%

On Feb 25, ManTech reported fourth quarter 2008 results which saw revenue jump 17% to $494.7 million from $421.8 million in the fourth quarter of 2007. It was an organic growth rate of 12% compared to the year ago period.

Revenue for the full year 2008 climbed 29% to $1.871 billion from $1.448 billion in 2007. The company attributed 2008's growth to new business supporting national security programs for the Department of Defense, Intelligence Community and Homeland Security.

Net income for the fourth quarter surged 15% to $24.6 million compared to $21.4 million in 2007. Earnings per share were 69 cents, up 13% from the year ago period. EPS was inline with analysts' estimates.

2009 Guidance

ManTech is bullish about 2009 as it continues to see strong growth in its national security and defense business. On Feb 25, it provided a 2009 forecast for both the first quarter and the full year. It expects first quarter earnings per share in the range of 68 cents to 71 cents, which would represent 20% to 25% growth over the first quarter of 2008.

For the full year, earnings per share are forecasted between $2.91 and $3.05 per share, a 14% to 20% increase over full year 2008 earnings.

Consensus Estimates Rise

Given the company's recent guidance, covering analysts moved to raise estimates for the first quarter and the full year.

First quarter consensus estimates rose 2 cents to 69 cents per share. 2009 consensus estimates jumped 6 cents to $2.98, which is nearly in the middle of the company's forecasted range. Analysts expect year over year earnings growth of 15.58%, which is in the company's projected range.

Value Fundamentals

ManTech is a Zacks #1 Rank (strong buy) stock. It has a forward P/E of 12.91 and a price-to-book of 2.24. The company has a solid 5-year average return on equity (ROE) of 12.54%.