Analysts say ManTech International Corp.’s emphasis on counterterrorism and intelligence puts the Fairfax defense contractor in a strong position, even if a future administration scaled back military forces in Iraq and elsewhere.
“In the world of intelligence collection and analysis, companies like ManTech stand to benefit because the use of these data and analytical systems will only increase as more troops are pulled out of that part of the world,” said Michael S. Lewis, a senior vice president at BB&T Capital Markets. “That’s a little bit different, in my opinion, than what might happen to weapons system providers.”
ManTech, which has 7,300 employees, builds and maintains terrorist-tracking databases and also supports telecommunications services used in Operation Iraqi Freedom. It competes in a crowded security market with players like Accenture Inc., Computer Sciences Corp., SRA International Inc. and CACI International Inc., as well as larger contractors such as General Dynamics Corp. and Northrop Grumman Corp.
The company eclipsed Wall Street estimates last week when it announced $750 million in contract awards during the first quarter, one-fourth of which is from new business or expansions under current contracts.
“We’re off to a great start, and we’re very pleased,” President and Chief Operating Officer Robert A. Coleman said. ManTech announces its full first-quarter results at the end of the month.
Mr. Lewis, whose company does investment banking for ManTech, expects the company’s revenues to climb nearly 22 percent this year to $1.8 billion. ManTech’s recent wins include a $268 million one-year contract extension under the U.S. Army’s Countermine program, which helps protect troops against improvised explosive devices. The company is also reaping the benefits of acquisitions including SRS Technologies Inc. and McDonald Bradley Inc.
“The company continues to win new contracts; they continue to win recompetes, which are very important to maintain growth; and they are improving their profitability on current contracts in their mix,” Mr. Lewis said. “They’re making smart acquisitions, which are opening the firm to new customers and growing the products and services they offer to their existing customer base.”
Like other defense contractors, the company is waiting for Congress to approve a supplemental war funding bill.
“Obviously, everyone would like to see the supplemental pass,” Mr. Coleman said. “The great thing about the space we’re in is we believe that funding flows there faster, and the organizations, because of their need to continue the mission, may pool money from other areas to keep focused on our particular mission space.”
Shares of ManTech closed down 16 cents yesterday at $46.14 on the Nasdaq.
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