NV5 Global, Inc. (NVEE, Financial) has been awarded a significant five-year contract by the National Oceanic and Atmospheric Administration (NOAA), worth up to $250 million. This contract involves providing shoreline mapping services to aid the National Geodetic Survey (NGS). With more than a decade of experience in supporting NOAA’s geospatial projects, NV5 is well-equipped to fulfill the technical and operational requirements of this project.
The company's geospatial services aim to bolster NOAA’s Coastal Mapping Program, which focuses on enhancing the development and maintenance of nautical charts and other critical coastal resources. NV5 will employ advanced techniques to collect and analyze precise geospatial data via ground, aerial, and satellite technologies. This effort will ensure comprehensive mapping of oceanic, arctic, lake, and riverine environments, also supporting national emergency responses, such as hurricane recovery efforts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for NV5 Global Inc (NVEE, Financial) is $25.02 with a high estimate of $30.00 and a low estimate of $22.00. The average target implies an upside of 13.37% from the current price of $22.07. More detailed estimate data can be found on the NV5 Global Inc (NVEE) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, NV5 Global Inc's (NVEE, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NV5 Global Inc (NVEE, Financial) in one year is $30.90, suggesting a upside of 40.01% from the current price of $22.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NV5 Global Inc (NVEE) Summary page.
NVEE Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NV5 Global Inc (NVEE, Financial) reported a strong start to 2025, exceeding budget expectations with 5% organic growth in gross revenues.
- The company achieved record first-quarter results with $234 million in gross revenues, a 10% increase from the previous year.
- NV5 Global Inc (NVEE) completed three strategic acquisitions in Q1, enhancing its platform and accelerating organic growth.
- The infrastructure and buildings and technology segments showed strong performance, with 12% and 17% growth in gross revenues, respectively.
- The company has implemented successful margin and cash flow initiatives, achieving a 96% increase in cash flows from operations compared to the previous year.
Negative Points
- Growth in the geospatial segment was slowed due to delays in federal contract awards, attributed to the transition of a new administration.
- The company's GAAP results were impacted by a $1.4 million increase in amortization of intangible assets due to acquisitions.
- NV5 Global Inc (NVEE) experienced a contract cancellation with the Centers for Disease Control and Prevention, valued at approximately $100,000.
- The company faces challenges in its cross-selling program, as it previously incentivized employees for signing contracts rather than as revenue was generated.
- There is a need for a gradual ramp-up in profit margins, with significant improvements expected in the second half of the year.
