Noble Financial Affirms Mercury Systems (MRCY) at 'Hold'; Solid End to FY, but Valuation Full

Noble Financial affirms Mercury Systems (Nasdaq: MRCY) with a Hold rating following Q4 results reported on Tuesday night.

Analyst Mark Jordon noted the following key points on Wednesday:

• Organic Revenues Meet Expectations. At $68.8 million, organic revenues for the fourth quarter were in line with our expectation of $67.5 million and consensus estimates of $69.5 million, and represented a 7.3% gain year-over-year.
• Earnings Helped by One Time Gains. GAAP earnings of $0.22 per share for the quarter include $0.08 per share of positive impacts from legal settlements and accounting adjustments. The adjusted $0.14 per share of earnings for the quarter met consensus estimates and modestly beat our estimate of $0.12 per share for the quarter.
• Organic backlog grew 8.1% year-over-year, ending Fiscal 2016 at $224.9 million. Fiscal 2016 bookings were roughly flat with an organic book-to-bill ratio of 1.06, with our initial 2017 revenue estimates also being roughly flat.
• At current market levels, Mercury is trading at an EV/EBITDA multiple of 13.0, which we believe to be within the fair valuation.

For an analyst ratings summary and ratings history on Mercury Computer click here. For more ratings news on Mercury Computer click here.

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