Parsons Corp
$PSN
Some background info below, but this is a name I’ve had on a watchlist as relatively new IPO (2019) that had recently cross back over its AVWAP from IPO. The stock sold off following its 4/30 earnings report, but has recapture those levels in the past couple of days. Bit of a volume gap into the 200 day moving average, which is how I’m planning to trade this (~$6 of upside).
From there I’d want to see a break and hold above the 200 day.
Parsons Corporation ($PSN) is a U.S.-based technology-focused defense, intelligence, and critical infrastructure engineering company. Founded in 1944 and headquartered in Centreville, Virginia, Parsons provides a wide range of services to government and commercial clients globally.
Key Business Segments:
Federal Solutions – Offers services to the U.S. Department of Defense, Intelligence Community, and other federal agencies. This includes:
Cybersecurity
Missile defense systems
Intelligence, surveillance, and reconnaissance (ISR)
Space operations support
Critical Infrastructure – Provides design, engineering, and program management for:
Transportation systems (roads, bridges, rail)
Water and wastewater systems
Smart infrastructure and digital modernization
Q1 2025 Earnings Highlights
Parsons reported record-breaking results for the first quarter of 2025:
Revenue: $1.6 billion, a 1% year-over-year increase.
Net Income: $66 million, up 67% from the previous year.
Earnings Per Share (EPS): $0.60, a 61% increase year-over-year.
Adjusted EBITDA: $149 million, a 5% increase, with a margin of 9.6%.
Backlog: Reached a record $9.1 billion.
Book-to-Bill Ratio: 1.1x overall, with the Critical Infrastructure segment at 1.4x.en.wikipedia.org+5stocktitan.net+5globenewswire.com+5globenewswire.com+1stocktitan.net+1
The Critical Infrastructure segment experienced a 14% revenue growth and a 51% increase in adjusted EBITDA. Excluding a confidential contract, the Federal Solutions segment grew 8% in revenue. stocktitan.net+7stocktitan.net+7globenewswire.com+7
📉 FY 2025 Guidance Revision
Parsons revised its full-year 2025 revenue guidance due to the exclusion of a confidential contract set to expire post-June 2025:globenewswire.com+3gurufocus.com+3gurufocus.com+3
New Revenue Forecast: $6.45 billion to $6.65 billion, down from the previous $7.0 billion to $7.5 billion.
Adjusted EBITDA Guidance: Reduced by approximately 10%.gurufocus.comnasdaq.com+2gurufocus.com+2en.wikipedia.org+2
This announcement led to a 4.6% decline in Parsons' share value in after-hours trading. gurufocus.com
Analyst Ratings
Goldman Sachs: Maintained a "Buy" rating but lowered the price target from $90 to $80.
Bank of America: Reduced the price objective from $100 to $95, maintaining a "Buy" rating. gurufocus.com