Everforth (NYSE:EFOR) Issues Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Everforth (NYSE:EFOR) posted its quarterly earnings data on Wednesday, October 28th. The company reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.09, FiscalAI reports. The company had revenue of $1.03 billion during the quarter. Everforth had a return on equity of 8.87% and a net margin of 1.71%. Everforth’s revenue for the quarter was up 2.0% compared to the same quarter last year.

Here are the key takeaways from Everforth’s conference call:

• Third-quarter results exceeded guidance, with revenue of $1.03 billion and adjusted EBITDA of $106.3 million; the 10.3% adjusted EBITDA margin reached the top of the company’s target range.
• Demand remained strong in AI, data, cybersecurity, cloud, and enterprise modernization. Commercial consulting book-to-bill was 1.1x, federal quarterly book-to-bill was 1.9x, and security and risk bookings increased more than 40% year to date.
• Everforth said its technology partnerships and expanded onshore/offshore delivery model are generating larger, longer-duration opportunities, while the Quinnox acquisition is already supporting revenue synergies and additional offshore capacity.
• The company repaid approximately $52.8 million of debt during the quarter, including opportunistic bond repurchases, and remains focused on reducing net leverage from 3.1x to 2.5x or below. Management also reiterated its goal of achieving at least 12.5% adjusted EBITDA margin by the end of 2028 through growth, margin expansion, and $80 million of structural cost savings.
• Fourth-quarter guidance calls for revenue of $965 million to $995 million and adjusted EBITDA of $93 million to $103 million, reflecting normal seasonality, three fewer billable days, and limited near-term contribution from recent federal bookings. Management described the outlook as steady rather than accelerating, while strategic planning expenses of $6 million to $7.5 million will continue to weigh on results before normalizing in 2027.

Everforth Stock Up 6.7%

Shares of NYSE EFOR traded up $2.28 during midday trading on Wednesday, reaching $36.53. The company had a trading volume of 195,628 shares, compared to its average volume of 959,094. Everforth has a one year low of $16.90 and a one year high of $54.94. The company has a debt-to-equity ratio of 0.75, a quick ratio of 2.13 and a current ratio of 2.13. The company’s fifty day simple moving average is $34.92. The company has a market cap of $1.50 billion, a PE ratio of 22.41 and a beta of 0.42.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. Weiss Ratings raised Everforth from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, September 28th. Zacks Research lowered Everforth from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Wall Street Zen raised Everforth from a “hold” rating to a “buy” rating in a research note on Saturday. BMO Capital Markets lifted their price target on Everforth from $30.00 to $41.00 and gave the stock a “market perform” rating in a research note on Friday, October 9th. Finally, Wells Fargo & Company lifted their price target on Everforth from $26.00 to $38.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 29th. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Everforth currently has an average rating of “Reduce” and an average price target of $33.83.

Institutional Investors Weigh In On Everforth

Hedge funds and other institutional investors have recently modified their holdings of the stock. SG Americas Securities LLC raised its position in Everforth by 68.9% during the 1st quarter. SG Americas Securities LLC now owns 68,386 shares of the company’s stock valued at $2,647,000 after purchasing an additional 27,903 shares during the last quarter. Crescent Grove Advisors LLC purchased a new position in shares of Everforth during the 3rd quarter worth approximately $408,000. Pictet Asset Management Holding SA purchased a new position in shares of Everforth during the 3rd quarter worth approximately $241,000. Finally, Ethic Inc. grew its holdings in shares of Everforth by 10.8% during the 3rd quarter. Ethic Inc. now owns 11,207 shares of the company’s stock worth $369,000 after acquiring an additional 1,092 shares during the period. Institutional investors own 95.36% of the company’s stock.

About Everforth

Everforth is a technology and digital engineering company that aims to help companies adapt and thrive in a world of constant change. The company combines industry expertise with in-demand solutions with the goal of driving meaningful outcomes for their customers.

In order to help commercial and government customers find success, Everforth provides tailored technology solutions that help their clients move faster and innovate with purpose. Their solutions fall into a variety of categories, including AI and Data Analytics, Cloud and Infrastructure, Cybersecurity, and Enterprise Platforms.