Telos Corporation (TLS) saw its stock price surge 5.20% in the last 24 hours, following the release of its strong third-quarter earnings report and a positive analyst outlook. The cybersecurity firm's shares rallied as investors responded to better-than-expected financial results and an improved growth profile.
According to Wedbush analysts, Telos posted Q3 revenue of $51.4 million, surpassing both its own guidance and Wall Street estimates. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also topped expectations. Notably, revenue from government security solutions more than doubled, driven by expanded TSA PreCheck enrollment, which exceeded Telos' internal targets. The firm also provided solid Q4 guidance, alleviating concerns over potential impacts from the US government shutdown.
Looking ahead, Wedbush raised its price target on Telos stock to $10 from $9, maintaining an outperform rating. The analysts cited Telos' significantly improved growth profile, with program expansions expected to generate recurring revenue from federal and commercial clients into late 2025 and beyond. Despite the positive news, it's worth noting that DA Davidson maintained a neutral rating on the stock, indicating some divergence in analyst opinions.
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