Savvy IT firms buck trend, gain share
The stocks of federal information technology and professionalservices companies are performing in line withthe S&P 500 this year. Both are down about 6 percent,while aerospace and defense companies' stocks are havinganother solid year and are up 7 percent.
Market disruption presents silver lining
One comment I often hear lately about the financialmarkets is that their volatility has increased. Theincreased volatility is an indicator of uncertainty, causinginvestors to react quickly to each piece of financial,economic or political news.
Quarterly reports: Firms hit their targets
With the public federal IT services firms having reported results for the quarterended Dec. 31, there have been some noteworthy trends. Contract awards have generally been lighter than last quarter. However, I anticipate better contract award activity in the next few quarters.
Domestic programs offer ticket to growth
Areas such as health care, energy, environment and education will probably see new government initiatives that require new IT and service programs to support them.
Third-quarter awards feed a hungry sector
Public companies that provide federal IT services have continued to see their stock prices rise since mid-August, when most of the companies reported second-quarter results and issued outlooks that excited investors.
Bill Loomis | Large contracts offer boost
Despite the difficult business environment for many federal IT and professional services companies - largely unaffected by the issues facing the broader stock market and economy - stocks of publicly traded companies have fared well so far this year.
Budget battles could trigger funding delays
The public federal IT and professional services firms will soon report second-quarter 2007 results. I generally expect them to report results in line with projections but to be cautiously optimistic of future results.
Ride on the tech market roller coaster to stop soon
The growth rates of the federal IT budget and growth among the publicly traded federal IT services firms have been slowing on average since the Iraq war began because funds allocated to the war have not fully covered the costs and usually have been delayed.
Bill Loomis | Climbing the Top 100 list: A few recipes for success
Washington Technology's 2007 Top 100 highlights how broad the federal professional services market has become.
Forecast remains cloudy and cool for IT services
The business environment for federal IT services companies continues to be challenging, with the companies largely reporting lackluster fourth-quarter results and outlook for 2007, with a couple of exceptions.
An uncertain refrain rings familiar in the New Year
Funding constraints continue to pound on IT companies.
Market Share: Power shift in Congress won't hurt federal IT spending
Midterm elections may have shifted power, but they won't shake federal IT spending.
Market Share | Quick budget bills are best medicine for weak EPS
Why have federal IT service stocks been so weak this summer? It's a question many investors and companies have been asking me.
Market Share | Congress puts 2007 spending bills on fast track
Investors' trepidation about slowing IT budget growth has prompted a drop in stocks of publicly traded federal IT companies. And it's no help that there is weakness in the overall stock market over concerns of rising interest rates and oil prices hurting global economic growth.
Market watch | Budget forecast calls for scattered funding
Results in the federal IT industry have been dampened by the late passage of the fiscal 2006 defense bill, and more recently have taken a hit from the delay in the defense supplemental spending bill.
Market Share: Bountiful contract awards to drive company growth in '06
Over the past year, federal IT service stocks are up by 18 percent, above the 9 percent from the S&P 500 and the 17 percent from commercial IT service companies. Looking to the future, as contract activity improves through the year, and mergers and acquisitions inevitably are announced, federal IT stocks may trade higher.
Market Share: Federal IT companies can expect solid growth this year
Federal IT services stocks have been up following the past month's fourth quarter earnings reports. Quarterly results and the near-term outlook were not exciting for investors, but contract awards seem to be picking up. Most of the public federal IT service companies are expecting accelerated growth in revenue and earnings per share.
Federal budgets create fertile field of IT opportunities
After reviewing the fiscal 2007 budget request, as well as fiscal 2006 enacted budgets, and the strong pace of defense spending, the outlook for federal IT services firms is favorable.
Market Share: Fewer midsize targets heat up M&A markets
The budget delay and moderating growth rates of federal IT services companies contributed to the failure of their stocks to keep pace with their earnings growth last year.
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