Mantech International: I Spy Profits

Strong sales and profit growth in weak economy.

Budget cuts at federal level. ManTech International Corporation

provides technologies and solutions for national security programs in the United States and internationally. The company's mission support solutions include cyber security, secure information sharing and collaboration, mission enabling solutions, enterprise systems engineering, service oriented architectures, intelligence operations and analysis support, and secrecy management and program security architecture. It also offers systems engineering services; modeling and simulation, testing, and evaluation; and independent validation and verification services. In addition, the company provides technical services, such as communication systems and infrastructure support, global and domestic mission-critical logistics support, global property management, and global information technology modernization. ManTech International Corporation offers its products and services to U.S. federal government intelligence, military and civilian agencies, state and local governments, and commercial customers. The company was founded in 1968 and is headquartered in Fairfax, Virginia. If there's a growth industry, it's security and intelligence. MANT offers both. Revenues reflect the need. In 2008, they were $1.871 billion. Last year, they reached $2.604 billion. This year, 15 analysts expect $2.99 billion to come in the front door. In 2012, they see $3.2 billion. In the second quarter, revenues were up by 13.77% to $752.7 million. Earnings followed sales. In 2007, they were $2.55, then $3.11, increasing to $3.43 in 2010. This year, 14 analysts have a consensus estimate of $3.75, then forecast $3.87 for 2012. In the third quarter, look for 93 cents a share (out in October or early November) compared to 86 cents in last year's third. For the final quarter, expect 96 cents vs 93 in 2010's fourth. That's all the good news. The concern for MANT, and why the stock is taking a breather from its recent high of $46.30, is budget cuts. With a new debt deal demanded, there will be cuts, and there will be blood. Some of it will come from spending on information technology and other systems engineering services. How much is the question. Still, ManTech has a record of winning most of the bids it makes, especially in the defense market. It has a strong relationship with the Department of Defense which is currently working on efficiency with Technology Services, one of ManTech's strengths. Management stated it expects backlog to grow in this area. Other areas the DOD (Department of Defense) will spend on: Missile defense and something called C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance). ManTech has products and services to help the DOD in these areas as well. Maybe the largest opportunity for growth is in cyber security. With plenty of products to solve these concerns, management believes its computer network operations business will see rapid growth in the next few years. Combined, these positive factors suggest revenues and profits should continue to climb, even if there are budget cuts. Management confirmed its fatih in the future by paying an initial dividend in June. Payment will be semi-annual. The first distribution was 42 cents a share. Look for another in December with an ex-dividend date around November 30 and a pay date around December 15. It should be 42 cents as well. That gives the stock a yield of 2.3% at current prices.

While most companies struggled to survive over the last 3 years, MANT thrived, offering products and serices that, unfortunately, are absolute necessities in the current times. Intelligence gathering saves lives. That means demand for ManTech's offerings should be strong for a long time to come. - Company Web site:

- Ted Allrich August 25, 2011