The stock's double-digit slide brought the price to $63.22, marking an 18% decline over the past year. According to the financial report, Parsons posted adjusted earnings of 75 cents a share, trailing the 79 cents per share projected by analysts polled by FactSet.
In section Market Quotes
Parsons Shares Sink on Q4 Earnings Miss and Federal Segment Slump
Parsons Corp. shares tumbled 10% after the technology and engineering firm reported fourth-quarter earnings and revenue that failed to meet analyst expectations. The miss was largely driven by a sharp contraction in the company's federal solutions business, alongside a slight decline in its total project backlog.
Revenue Hit by Federal Contracting Decline
Total revenue for the quarter fell 8% year-over-year to $1.6 billion, missing the $1.67 billion forecast by Wall Street. The downturn was most pronounced in the federal solutions segment, where revenue plummeted 22% to $784.2 million compared to the same period last year.The company also reported a $8.7 billion backlog, representing a 2% decrease from previous levels. This contraction in future contracted work, combined with the quarterly revenue miss, fueled the negative investor sentiment surrounding the defense and infrastructure provider.
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