PRSP - This Government Contractor Can Bounce Back After Losing Its Biggest Contract
Perspecta (NYSE: PRSP) faced a daunting challenge coming into its quarterly earnings report. Just a week prior, shares of the government services firm plunged after the Navy decided against renewing a contract that accounts for more than 15% of Perspecta revenue.
The company responded on Feb. 12 with an upbeat, but candid, earnings release and call that laid out the effect of the loss and how management intends to proceed from here.
"This is a setback to our plans, no question," CEO Mac Curtis told investors on the call. "As a company, we will weather the storm. We are confident we can grow our business."