Telos Corporation (TLS) stock surged 5.20% in Tuesday's trading session, following the release of its impressive third-quarter earnings report and a positive analyst outlook. The cybersecurity firm's strong performance and future growth prospects have reinvigorated investor confidence.
Telos reported 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 exceeded expectations. Notably, revenue from government security solutions more than doubled, driven by expanded TSA PreCheck enrollment that surpassed Telos' internal targets.
Adding to the positive sentiment, Wedbush analysts raised their price target on Telos stock to $10 from $9, maintaining an outperform rating. The analysts highlighted Telos' significantly improved growth profile, with program expansions expected to generate recurring revenue from federal and commercial clients into late 2025 and beyond. Despite concerns over the US government shutdown, Telos provided solid Q4 guidance, further bolstering investor confidence in the company's near-term prospects.
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