Vectrus earnings surge on contract wins, despite COVID-related delays

By Wayne Heilman

Although the COVID-19 pandemic cut revenue by nearly $13 million for Colorado Springs-based defense contractor Vectrus, profits still jumped 32.5% in the third quarter, the company reported Tuesday.

Earnings rose $2.5 million from a year earlier to $10.4 million, or 88 cents a share, during the July-to-September period and would have increased another $2.1 million without pandemic-triggered contract work delays, the company said. The earnings surge came despite a 2.1% drop in third-quarter revenue to $352.4 million, compared with the third quarter of last year. Vectrus CEO Chuck Prow credited the improved earnings to $2 billion in contract wins during the quarter.

Revenue for the first nine months of the year was up 2.3% from a year earlier to $1.04 billion, but earnings were off 10.5% to $20.2 million, or $1.72 a share. That included a pandemic-related hit totaling $4.2 million due to work delayed because the company's employees couldn't get on military bases to complete contract work as a result of COVID-19 restrictions.

 

Release date

Tuesday, November 10, 2020