The 10-second takeaway
For the quarter ended July 31 (Q2), SAIC beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Margins dropped across the board.
SAIC reported revenue of $2.85 billion. The 13 analysts polled by S&P Capital IQ expected a top line of $2.66 billion on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $2.60 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.32 for Q2 were 37% lower than the prior-year quarter's $0.51 per share. (The prior-year quarter included $0.19 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.1%, 90 basis points worse than the prior-year quarter. Operating margin was 6.7%, 140 basis points worse than the prior-year quarter. Net margin was 3.9%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.85 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $11.13 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 718 members out of 769 rating the stock outperform, and 51 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give SAIC a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SAIC is hold, with an average price target of $13.89.
Can your portfolio provide you with enough income to last through retirement? You'll need more than SAIC. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add SAIC to My Watchlist.