Earnings Review and Free Research Report: CSRA’s Earnings Surged 20.51%, Beating Estimates

Research Desk Line-up: 21Vianet Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on CSRA Inc. (NYSE: CSRA), can be viewed by registering at http://protraderdaily.com/optin/?symbol=CSRA, following the Company’s disclosure of its first quarter fiscal 2018 financial results on August 09, 2017. The information technology services provider recorded its tenth consecutive quarter with a book-to-bill ratio of 1.0x or higher and also provided outlook for fiscal 2018. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Information Technology Services industry. Pro-TD has currently selected 21Vianet Group, Inc. (NASDAQ: VNET) for due-diligence and potential coverage as the Company announced on August 22, 2017, its unaudited financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on 21Vianet when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CSRA; also brushing on VNET. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=CSRA

http://protraderdaily.com/optin/?symbol=VNET

Earnings Reviewed

CSRA’s revenue for the first quarter of fiscal year 2018 was $1.23 billion, down 2% compared to revenue of $1.25 billion in Q1 FY17. The Company noted that this was the smallest such decline since CSRA was formed in November 2015. CSRA’s revenue fell short of analysts’ estimates of $1.24 billion.

CSRA’s operating income totaled $136 million for Q1 FY18. The Company’s operating income included $10 million of separation, merger, and integration costs and $55 million of depreciation and amortization expense, including $12 million of amortization from acquisition-related intangible assets. CSRA’s adjusted EBITDA, which excludes these items, was $204 million for the reported quarter, up 5% on a y-o-y basis, while adjusted EBITDA margin of 16.6% was driven by strong contract performance and disciplined cost management.

Net income attributable to CSRA’s shareholders was $77 million, or $0.47 per share, for Q1 FY18 compared to $65 million, or $0.39 per share, in Q1 FY17. The Company’s adjusted diluted EPS was $0.48 for the reported quarter, which was unchanged from the comparable period a year ago. CSRA’s earnings number exceeded Wall Street’s expectations of $0.45 per share.

Cash Management and Capital Deployment

For Q1 FY18, CSRA’s operating cash flow was $87 million, and free cash flow was $76 million. The Company’s days sales outstanding (DSO) for the reported quarter were 56 days.

During Q1 FY18, CSRA returned $31 million to shareholders, including $17 million as part of its regular quarterly cash dividend program and $14 million in share repurchases. As of June 30, 2017, the Company had $194 million in cash and cash equivalents and $2.6 billion in debt.

On June 15, 2017, CSRA entered into a second amendment to the credit agreement for its Term Loan B Facility, which reduced the margin over the index interest rate by 0.5% and shifted approximately $184 million in debt from its Term Loan A1 Facility to the amended Term Loan B Facility.

Business Development

During Q1 FY18, CSRA’s Bookings totaled $1.6 billion, representing a book-to-bill ratio of 1.3x. The Company’s first quarter marked the tenth consecutive quarter with a book-to-bill ratio of 1.0x or higher. CSRA’s bookings for the trailing twelve months totaled $7.2 billion, representing a book-to-bill ratio of 1.5x.

CSRA’s backlog of signed business orders at the end of Q1 FY18 was $15.6 billion, of which $2.5 billion was funded. Compared to Q4 FY17, the Company’s reported quarter total and funded backlog were up 3% and 2%, respectively.

Business Outlook

For FY18, CSRA is forecasting revenue in the range of $5.00 billion to $5.20 billion. The Company is projecting adjusted EBITDA in the band of $770 million to $800 million and adjusted diluted earnings per share in the range of $1.88 to $2.00. CSRA is anticipating free cash flow in the range of $330 million–$380 million for fiscal 2018.

Stock Performance

At the closing bell, on Thursday, August 31, 2017, CSRA Inc.’s stock rose slightly by 0.64%, ending the trading session at $31.51. A total volume of 922.82 thousand shares have exchanged hands, which was higher than the 3-month average volume of 881.09 thousand shares. The Company’s stock price surged 3.52% in the last three months, 5.24% in the past six months, and 24.10% in the previous twelve months. The stock is trading at a PE ratio of 16.42 and has a dividend yield of 1.27%. The stock currently has a market cap of $5.12 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 474399