VSE (NASDAQ:VSEC) Announces Earnings Results

Key Points

• VSE reported a quarterly EPS of $1.17, beating estimates of $0.93 by $0.24, and revenue of $324.58 million versus the $310.16 million consensus, while posting a net margin of 1.84% and ROE of 7.6%.
• The stock rallied $9.32 to $177.43 on Tuesday with ~576k shares traded; the company has a market cap of $4.98 billion, a high P/E of ~199, and a 52-week range of $112.50–$232.61.
• VSE recently paid a quarterly dividend of $0.10 (annualized $0.40, yield 0.2%) and faces broad analyst optimism — consensus rating "Buy" with an average price target of $223.13 and several firms issuing upgrades.

VSE (NASDAQ:VSEC - Get Free Report) released its earnings results on Tuesday. The construction company reported $1.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.24, FiscalAI reports. VSE had a return on equity of 7.60% and a net margin of 1.84%.The business had revenue of $324.58 million during the quarter, compared to the consensus estimate of $310.16 million.

VSE Price Performance

VSE stock traded up $9.32 during midday trading on Tuesday, hitting $177.43. 576,035 shares of the company's stock were exchanged, compared to its average volume of 645,817. VSE has a 52-week low of $112.50 and a 52-week high of $232.61. The stock has a 50-day moving average price of $199.51 and a two-hundred day moving average price of $190.41. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.43 and a current ratio of 3.76. The company has a market cap of $4.98 billion, a P/E ratio of 199.36, a PEG ratio of 1.56 and a beta of 1.25.

VSE Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 15th were given a $0.10 dividend. The ex-dividend date was Wednesday, April 15th. This represents a $0.40 annualized dividend and a dividend yield of 0.2%. VSE's payout ratio is 44.94%.

Analysts Set New Price Targets

VSEC has been the subject of a number of recent research reports. Truist Financial raised VSE to a "strong-buy" rating in a research report on Friday. Weiss Ratings reissued a "hold (c)" rating on shares of VSE in a research report on Friday, April 24th. Zacks Research raised VSE from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 27th. Jefferies Financial Group started coverage on VSE in a research report on Tuesday. They issued a "buy" rating and a $210.00 price target for the company. Finally, B. Riley Financial lifted their price target on VSE from $208.00 to $258.00 and gave the company a "buy" rating in a research report on Monday, February 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $223.13.

Hedge Funds Weigh In On VSE

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. New York State Common Retirement Fund grew its position in VSE by 11.1% during the fourth quarter. New York State Common Retirement Fund now owns 274,865 shares of the construction company's stock worth $47,488,000 after buying an additional 27,448 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in VSE by 56.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 50,422 shares of the construction company's stock worth $6,050,000 after buying an additional 18,220 shares in the last quarter. Goldman Sachs Group Inc. grew its position in VSE by 10.4% during the first quarter. Goldman Sachs Group Inc. now owns 346,390 shares of the construction company's stock worth $41,563,000 after buying an additional 32,489 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in VSE by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,485 shares of the construction company's stock worth $1,258,000 after buying an additional 470 shares in the last quarter. Finally, AQR Capital Management LLC purchased a new position in VSE during the first quarter worth about $247,000. 91.54% of the stock is currently owned by hedge funds and other institutional investors.

About VSE

VSE Corporation NASDAQ: VSEC is a provider of aftermarket distribution and supply chain management services serving both government and commercial markets. The company's solutions span a wide range of industries, with particular emphasis on defense, aerospace and transportation. VSE's core mission is to ensure mission readiness by delivering critical parts, maintenance and technical support for equipment throughout its lifecycle.

Through its Distribution Services segment, VSE sources, markets and distributes replacement parts and components for commercial truck, bus, rail and specialty vehicle applications.

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