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SAIC (NYSE: SAI) reported earnings on June 3. Here are the numbers you need to know.
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.
Revenue details
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 details
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.
Margin details
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.)
Looking ahead
Next quarter's average estimate for revenue is $2.56 billion. On the bottom line, the average EPS estimate is $0.26.
Investor sentiment
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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