The 10-second takeaway
For the quarter ended Oct. 31 (Q3), SAIC met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased.
Margins grew across the board.
SAIC chalked up revenue of $2.87 billion. The 12 analysts polled by S&P Capital IQ hoped for sales of $2.85 billion on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $2.81 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 $0.33. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS were $0.33 for Q3 versus -$0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.6%, 140 basis points better than the prior-year quarter. Operating margin was 6.7%, 660 basis points better than the prior-year quarter. Net margin was 3.9%, 710 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.68 billion. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $11.16 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 724 members out of 775 rating the stock outperform, and 51 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 164 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 $13.29.
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