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WYY: Major Telecom SaaS Contract Will Drive Future Earnings Upside

WYY: New Federal Contract Will Drive Earnings Upside Through 2026

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WYY
AnalystConsensusTarget
Not Invested
Published 13 Apr 2025

Update shared on 07 Dec 2025

Previous
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AnalystConsensusTarget's Fair Value
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1Y
13.8%
7D
-5.2%

Analysts have modestly increased their price target on WidePoint to reflect a slightly higher discounted cash flow valuation and forward earnings multiple, supported by incremental improvements in projected revenue growth and profit margins.

What's in the News

  • Revised 2025 earnings guidance now calls for full year revenue to come in slightly below the prior range, as contract timing and weaker first half results weigh on the outlook (Corporate Guidance).
  • A new five year Navy Spiral 4 related contract awarded by the U.S. Army, valued at over 1.25 million dollars if all options are exercised, will provide secure alphanumeric paging and comprehensive managed mobility services (Client Announcement).
  • Secured a multi year SaaS contract with a major telecom carrier to deploy its FedRAMP Authorized ITMS Command Center Platform, expected to manage 2 million to 2.5 million units and generate 40 to 45 million dollars over the initial three year term (Client Announcement).
  • Won a new CWMS 2.0 task order with U.S. Customs and Border Protection to manage 30,000 cellular lines of service, with a ceiling exceeding 27.5 million dollars through December 2026 (Client Announcement).

Valuation Changes

  • Fair Value Estimate remains unchanged at 9.33 dollars per share, indicating no revision to the intrinsic value assessment.
  • The Discount Rate has risen slightly from 9.11 percent to 9.16 percent, reflecting a modest increase in the assumed risk profile.
  • Revenue Growth is effectively unchanged at approximately 12.61 percent, signaling a stable outlook for top line expansion.
  • Net Profit Margin is effectively unchanged at about 2.98 percent, suggesting no material adjustment to long term profitability expectations.
  • Future P/E has risen slightly from 21.45x to 21.47x, implying a marginally higher valuation multiple on expected earnings.

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Disclaimer

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