CSRA Inc. is set to report fiscal second-quarter 2018 earnings on Nov 7. We expect the company to deliver strong results driven by frequent contract wins, solid backlog, improving federal spending environment and revenue visibility.
Total backlog at the end of the last quarter was $15.6 billion. Per management, revenue visibility has improved, with 91% revenues to come from existing contracts.
Notably, the company beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 10.40%. Last quarter, the company delivered a positive earnings surprise of 6.67%.
However, the top-line performance has not been consistent. The company has missed the Zacks Consensus Estimate for revenues in three of the trailing four quarters.
CSRA’s stock has returned 0.1% year to date, substantially underperforming the 31.9% rally of the industry.
Factors to Consider
CSRA is benefiting from its domain expertise and strong partnership base that includes the likes of ServiceNow Inc. (NOW - Free Report) , Microsoft Corporation (MSFT - Free Report) and Red Hat among others. The small tuck-in acquisition of NES is expected to boost the company’s ability to win contracts.
CSRA is likely to report year-over-year revenue growth in the soon-to-be-reported quarter. The company continues to win contracts regularly. During the quarter, CSRA and its Eagle Alliance joint venture with Northrop Grumman received a potential 10-year, $2.4-billion contract from the U.S. National Security Agency (NSA) relating to the enterprise IT service portion of the Groundbreaker contract.
Moreover, CSRA is expected to gain from the improving spending environment and passing of the Modernizing Government Technology Act.
Why a Likely Positive Surprise?
Moreover, our proven model shows that CSRA is likely to beat earnings due to the favorable combination of Zacks Rank #3 (Hold) and +1.70% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here is a stock you may consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.71% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
CSRA Inc. is set to report fiscal second-quarter 2018 earnings on Nov 7. We expect the company to deliver strong results driven by frequent contract wins, solid backlog, improving federal spending environment and revenue visibility.
Total backlog at the end of the last quarter was $15.6 billion. Per management, revenue visibility has improved, with 91% revenues to come from existing contracts.
Notably, the company beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 10.40%. Last quarter, the company delivered a positive earnings surprise of 6.67%.
However, the top-line performance has not been consistent. The company has missed the Zacks Consensus Estimate for revenues in three of the trailing four quarters.
CSRA’s stock has returned 0.1% year to date, substantially underperforming the 31.9% rally of the industry.
Factors to Consider
CSRA is benefiting from its domain expertise and strong partnership base that includes the likes of ServiceNow Inc. (NOW - Free Report) , Microsoft Corporation (MSFT - Free Report) and Red Hat among others. The small tuck-in acquisition of NES is expected to boost the company’s ability to win contracts.
CSRA is likely to report year-over-year revenue growth in the soon-to-be-reported quarter. The company continues to win contracts regularly. During the quarter, CSRA and its Eagle Alliance joint venture with Northrop Grumman received a potential 10-year, $2.4-billion contract from the U.S. National Security Agency (NSA) relating to the enterprise IT service portion of the Groundbreaker contract.
Moreover, CSRA is expected to gain from the improving spending environment and passing of the Modernizing Government Technology Act.
Why a Likely Positive Surprise?
Moreover, our proven model shows that CSRA is likely to beat earnings due to the favorable combination of Zacks Rank #3 (Hold) and +1.70% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here is a stock you may consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.71% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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