SRX FQ2 Beats Marginally, Services Segment Robust, Losses At ERA
Analysts at Jefferies & Co maintain their "hold" rating on SRA International (NYSE: SRX), while raising their estimates for the company. The target price for SRX has been reduced from $20 to $19.
SRA International reported its FQ2 results marginally ahead of the estimates and the consensus, driven by a robust performance by its services segment. However, SRX’s ERA business continues to generate operating losses, the analysts say.
“Despite soft bookings for most federal IT players due to slower contract adjudication activity recently, healthy award activity in a seasonally soft quarter is encouraging, in our view,” the analysts add. Jefferies & Co has raised its EPS estimates for FY10 and FY11 from $1.20 to $1.27 and from $1.24 to $1.31, respectively.
