Core Viewpoint - Amentum's first quarter fiscal 2026 financial results showed mixed performance, leading to a significant decline in stock price despite earlier gains in the year [2][5]. Financial Performance - Amentum reported adjusted diluted earnings per share (EPS) of $0.54, surpassing analyst expectations of $0.52 [5]. - The company's revenue for Q1 2026 was $3.24 billion, falling short of the anticipated $3.32 billion, marking a 5% year-over-year decrease [5]. - Amentum experienced negative free cash flow of $142 million in Q1 2026, a notable decline from the positive $102 million reported in Q1 2025 [7]. Market Reaction - Following the financial results announcement, Amentum's stock price dropped 19.9% from the end of trading last Friday to the close of Thursday's market session [3]. - Despite a 27.2% increase in stock price since the beginning of 2026, investor sentiment turned negative, leading to a sell-off [2]. Future Guidance - For fiscal 2026, Amentum provided a revenue forecast of $13.95 billion to $14.3 billion, indicating a year-over-year growth of about 3% [8]. - The company also projected adjusted EBITDA of $1.1 billion to $1.14 billion, reflecting a year-over-year growth of approximately 5% [8]. Valuation Considerations - Amentum's stock is currently trading at 75.2 times trailing earnings, suggesting that it may not be a bargain for investors at this time [9].
Why Amentum Stock Is Crashing This Week