Executive Mosaic’s GovCon Index closed -1.77% lower at $4,810,24 following the significant losses of defense stocks. The Nasdaq Composite (+0.51%) and S&P 500 (+0.36%) extended their winning streaks to three days, while the Dow Jones Industrial Average (-0.28%) went under.
The day’s tailwinds were the favorable corporate earnings and the 11,000 marginal increase in initial jobless claims to 219,000 in the week of Feb.1. Tobacco giant Philip Morris (NYSE: PM) was among the top gainers with +10.95%. GCI stock Honey International (NYSE: HON) led Dow Jones decliners.
Defense Stocks Lose Big
Losers trumped gainers on the GovCon Index as defense stocks suffered a beating. Palantir Technologies (Nasdaq: PLTR) rose +9.79% to lead six advancers. Only Carlyle Group (Nasdaq: CG) was flat. HII (NYSE: HII) tanked -18.32% on the losing side. Maximus (NYSE: MMS) fell -7.69, while two other GCI stocks, along with Honeywell, dropped more than 5%.
In Q4 2024, HII reported a 5.4% and 55.1% year-over-year drop in revenue and net earnings to $3 billion and $134 million. For the full year, profit declined 19.2% to $550 million compared to 2023. The military shipbuilder won new contracts but suffered from the extended timetable from award to completion.
“We continue to make progress on ships put under contract pre-COVID, and are working diligently with our customers to put over $50 billion of new work under contract,” said Chris Kastner, CEO of HII.
For Maximus, revenue in Q1 fiscal 2025 increased 5.7% year-over-year to $1.4 billion, but net income fell 35.78% to $41.2 million versus Q1 fiscal 2024. Nonetheless, Bruce Caswell, president and CEO of the global government services provider, said, “We have recently been successful in removing multiple contractual and business uncertainties that ultimately strengthen the durability of our business.” As of Dec. 31, 2024, the total signed contract is $2.08 billion. Management also raised its earnings and adjusted revenue guidance for fiscal year 2025.
Major Breakup
Honeywell confirmed on Thursday that it will split the advanced materials, aerospace and automation divisions into three independent, publicly traded companies. The multinational technology company said the breakup of the main divisions would enhance strategic focus and unlock shareholder value.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,810.24 | -85.31 | -1.77% |
| Dow Jones Industrial Average | 44,747.63 | -125.65 | -0.28% |
| NASDAQ | 19,791.99 | 99.66 | 0.51% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 111.28 | 9.92 | 9.79% |
| FLR | 48.8 | 1.03 | 2.16% |
| BA | 184.8 | 2.96 | 1.63% |
| KBR | 54.4 | 0.64 | 1.19% |
| TXT | 75.26 | 0.71 | 0.95% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 111.28 | 9.92 | 9.79% |
| BA | 184.8 | 2.96 | 1.63% |
| J | 133.48 | 1.21 | 0.91% |
| FLR | 48.8 | 1.03 | 2.16% |
| TXT | 75.26 | 0.71 | 0.95% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| HII | 159.75 | -35.83 | -18.32% |
| MMS | 70 | -5.83 | -7.69% |
| HON | 209.82 | -12.53 | -5.64% |
| MRCY | 47.34 | -2.54 | -5.09% |
| KTOS | 32.54 | -1.74 | -5.08% |
