Chantilly, Virginia-based Amentum Holdings, Inc. (AMTM) provides engineering and technology solutions to address challenges in science, security, and sustainability. Valued at a market cap of $4.8 billion, the company serves various markets, such as energy and environment, space, intelligence, defense, civilian, commercial, and international markets. It is expected to announce its fiscalQ1 earnings results before the market opens on Wednesday, Feb. 5.
Ahead of this event, analysts expect the engineering company to report a profit of $0.45 per share. The company, which made its public debut just last year, has exceeded Wall Street's bottom-line estimates in its latest earnings release. Its earnings of $0.47 per share in the previous quarter outpaced the consensus estimates by a notable margin of 27%.
For fiscal 2025, analysts project AMTM to report an EPS of $2.10, up 4.5% from a profit of $2.01 in fiscal 2024.
Shares of AMTM have declined 35.6% over the past three months, significantly lagging behind both the S&P 500 Index's ($SPX) 4.2% rise and the Industrial Select Sector SPDR Fund’s (XLI) 1.8% return over the same stretch.
On Dec. 17, shares of Amentum Holdings declined nearly 9.6% after its Q4 fiscal year 2024 earnings release. The company delivered adjusted earnings of 0.47 per share and revenues of $2.2 billion in Q4. Moreover, In fiscal year 2024, on a pro forma basis, revenues reached $13.9 billion, marking a 4% growth, and pro forma net income stood at $32 million. A notable achievement was the significant increase in the company’s backlog, which rose to $45 billion, largely due to new contracts and the addition of a backlog from CMS.
Amentum maintains a positive outlook for fiscal year 2025, with expected revenues between $13.8 billion and $14.2 billion and Adjusted EBITDA ranging from $1,060 million to $1,100 million.
Wall Street analysts are moderately optimistic about AMTM’s stock, with a "Moderate Buy" rating overall. Among three analysts covering the stock, one recommends a "Strong Buy," one suggests a “Moderate Buy,” and one recommends a “Hold.”
The mean price target for AMTM is $28.33, which indicates an impressive 42.4% potential upside from the current levels.
