The KEYW Holding Corp (NASDAQ:KEYW) Estimates Lowered on Contract Loss

The KEYW Holding Corp (NASDAQ:KEYW) have had its estimates lowered on them by FBR Capital after not getting the A5XP contract from the U.S. Air Force, but FBR remains postive on them for 2011.

FBR says, "KEYW announced last night that it was not awarded the A5XP contract from the U.S. Air Force...Despite the loss of the A5XP contract, we remain positive on the company since it is well positioned to capitalize on the spending trends in cybersecurity, in our opinion. We are slightly lowering our revenue and EPS estimates based on this contract loss; however, if the recent product win plays out as expected, we could see upside to our 2011 estimates.

"Based on this award offsetting the A5XP loss, our 2011 revenue is only decreasing by $8 million from $257.2 million to $249.2 million...In terms of EPS, a similar scenario is likely. Our existing $0.50 estimate is being reduced to $0.47 due to the loss of A5XP; however, the SMT win adds an additional $0.01, making our new 2011 EPS estimate $0.48."

FBR Capital reiterates an "Outperform" rating on The KEYW Holding Corporation, which closed Thursday at $14.00, down $0.69, or 4.70 percent. FBR has a price target of $18 on them.