The 10-second takeaway
For the quarter ended Jan. 31 (Q4), SAIC met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased.
Margins grew across the board.
SAIC logged revenue of $2.71 billion. The 11 analysts polled by S&P Capital IQ expected to see sales of $2.71 billion on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $2.47 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 $0.65. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.48 per share. Non-GAAP EPS of $0.65 for Q4 were 110% higher than the prior-year quarter's $0.31 per share. GAAP EPS were $0.54 for Q4 compared to -$0.47 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 12.2%, much better than the prior-year quarter. Operating margin was 6.7%, much better than the prior-year quarter. Net margin was 6.9%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.57 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $10.33 billion. The average EPS estimate is $1.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 730 members out of 782 rating the stock outperform, and 52 members rating it underperform. Among 177 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 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 $12.42.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.