The 10-second takeaway
For the quarter ended May 3 (Q1), SAIC beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Gross margins increased, operating margins shrank, net margins dropped.
SAIC chalked up revenue of $2.71 billion. The 11 analysts polled by S&P Capital IQ looked for sales of $2.58 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.29. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. Non-GAAP EPS of $0.29 for Q1 were 17% lower than the prior-year quarter's $0.35 per share. GAAP EPS of $0.23 for Q1 were 34% lower than the prior-year quarter's $0.35 per share.
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%, 20 basis points better than the prior-year quarter. Operating margin was 6.5%, 100 basis points worse than the prior-year quarter. Net margin was 3.0%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.56 billion. On the bottom line, the average EPS estimate is $0.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 727 members out of 779 rating the stock outperform, and 52 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give SAIC a green thumbs-up, and eight give it a red thumbs-down.
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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.