The 10-second takeaway
For the quarter ended Jan. 31 (Q4), SAIC missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
SAIC logged revenue of $2.49 billion. The 11 analysts polled by S&P Capital IQ hoped for a top line of $2.70 billion on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $2.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.31. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS were -$0.49 for Q4 compared to $0.36 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 -0.2%, 1,260 basis points worse than the prior-year quarter. Operating margin was -4.5%, 1,260 basis points worse than the prior-year quarter. Net margin was -6.5%, 1,170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.69 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $10.79 billion. The average EPS estimate is $1.38.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 719 members out of 769 rating the stock outperform, and 50 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 give SAIC a green thumbs-up, and eight 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 $13.57.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.