Shares of aerospace and defense company V2X Inc (NYSE:VVX) are trading higher after it reported a fourth-quarter FY23 sales growth of 6.4% year-on-year to $1.04 billion, beating the analyst consensus estimate of $1.01 billion.
The company reported revenue growth of 31% in the Pacific and 18% in the Middle East. Operating income for the quarter was $38.5 million, while adjusted operating income was $76.2 million.
Adjusted EBITDA for the fourth quarter was $82.1 million, with a margin of 7.9%. Adjusted EPS of $1.22 beat the consensus estimate of $0.33.
V2X held $72.6 million in cash and equivalents as of December 31, 2023. Inventory as of December 31 totaled $46.9 million. Operating cash flow for the year ended December 31, 2023, was $187.9 million.
"I'm pleased to report a strong finish to 2023, with record revenue and strong operational performance which drove significant cash generation and net debt reduction," said President and CEO Chuck Prow.
Outlook: V2X sees FY24 revenue of $4.1 billion – $4.2 billion versus the consensus of $4.09 billion.
V2X sees adjusted EBITDA of $300 million – $315 million and Adjusted EPS of $3.85 – $4.20 against the consensus of $1.77.
The company expects revenue and adjusted EBITDA to be weighted more heavily in the second half of the year.
Price Action: VVX shares are trading higher by 12.41% at $43.44 on the last check Tuesday.