CIBC World Ups PEC Solutions Estimates

Analyst Stephen Murphy says the technology services company beat his estimates due to higher revenue and stronger margins

CIBC World raised its estimates on PEC Solutions (PECS ).

Analyst Stephen Murphy says the third quarter earnings per share beat his $0.17 estimate due to higher revenue and much better margins, as well as a "one-time" rush program for biometrics systems. He upped the $0.65 2002 earnings per share estimate to $0.74, and upped the $0.83 2003 estimate to $0.90 on the company's guidance.

Murphy says near term visibility looks good, though to some extent the 2003 outlook is cloudier based on a lagging Federal budget appropriations department. He notes the company, which provides technology services to the government, is well-positioned to grow 30%-plus on increasing Federal security spending.

Murphy raised the $29 target to $32, or 35 times the 2003 earnings per share. He is keeping his sector perform rating.

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