Top 20 Federal Contractor SAIC to Report Earnings

By Paul Ausick Published Mar 30, 10:10AM EDT

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Top 20 Federal Contractor SAIC to Report Earnings — © Digital Vision. / Getty Images

In morning trading on Thursday, the Dow Jones industrials were up 0.45%, the S&P 500 up 0.58% and the Nasdaq up 0.63%.

Before U.S. markets opened on Thursday, Manchester United reported a larger-than-expected loss per share but beat the revenue estimate. The share price rose by 1.25%, but investors’ fortunes rest on a potential sale of the team. Neither of the two leading competitors has reportedly met the current owner’s desired minimum of £6 billion (about $7.4 billion).

The EV charging network operator EVgo posted a loss of $0.06 per share, compared to an expected loss of $0.19. Revenue of $27.3 million easily topped a consensus estimate of $20.13 million. Shares traded up by nearly 27% early Thursday.

After U.S. markets close Thursday, BlackBerry will report quarterly results, while Science Applications International Corp. (NYSE: SAIC | SAIC Price Prediction) will take its turn in the earnings spotlight first thing Monday morning.

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SAIC provides a variety of IT services to a number of federal agencies, including the military, NASA, the State Department and the Department of Homeland Security. According to data compiled by FI-Aeroweb, SAIC was ranked 15th in prime contractor awards for the 2022 federal fiscal year that ended in September 2022. The company’s U.S. government contracts were valued at $5.35 billion, about 72% of SAIC’s total revenue.

Last week, the company announced the sale of its logistics and supply chain management business for about $350 million. SAIC is focusing its growth efforts on enterprise information technology, secure cloud and systems integration, and delivery systems.

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There are 11 analyst ratings on SAIC’s stock, and four of those are Buy or Strong Buy. Six brokerages rate the stock at Hold. At a recent share price of around $106.70, the upside potential based on a median price target of $117.50 is 10.1%. At the high target of $141.00, the upside potential is 32.1%.

For the fourth quarter of fiscal 2023, the consensus estimates call for revenue of $1.86 billion, which would be down 2.5% sequentially and by 4.5% year over year. SAIC is expected to post adjusted EPS of $1.65, down 13.0% sequentially but up 10.0% year over year. For the full fiscal year that ended in January, the company is expected to report EPS of $7.88, down 1.2%, on sales of $7.59 billion, up 2.7%.

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SAIC stock trades at 14.8 times expected 2023 EPS, 14.3 times estimated 2024 earnings of $7.43, and 13.0 times estimated 2025 earnings of $8.15 per share. The stock’s 52-week trading range is $79.33 to $117.94. SAIC pays an annual dividend of $1.48 (yield of 1.4%). Total shareholder return for the past year was 19.03%.

About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.