Yahoo Finance Science Applications (SAIC) Q1 Earnings & Sales Beat Estimates
Science Applications International Corporation SAIC delivered better-than-expected first-quarter fiscal 2024 results. The company reported adjusted earnings of $2.14 per share, surpassing the Zacks Consensus Estimate of $1.79. The bottom line increased 14% from the year-ago quarter’s earnings of $1.88 per share, mainly driven by higher revenues, the benefits of ongoing margin improvement initiatives and a lower tax rate.
Revenues increased 2% year over year to $2.03 billion and outpaced the consensus mark of $1.92 billion. The top line benefited from the timing of certain material sales previously planned for later in the fiscal year, along with improved performance.
Quarter in Detail
Net bookings for the fiscal first quarter were $2.1 billion, reflecting a book-to-bill ratio of 1.1. SAIC’s estimated backlog of signed business deals was $23.8 billion at the end of the first quarter, of which $3.9 billion was funded.
The non-GAAP operating income increased 13% year over year to $152 million. The non-GAAP operating margin expanded 80 basis points to 7.5%.
Adjusted EBITDA increased to $189 million from $173 million in the year-ago quarter. The adjusted EBITDA margin expanded to 9.3% from 8.7% in the year-ago quarter.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
Balance Sheet & Cash Flow Details
Science Applications ended the fiscal first quarter with cash and cash equivalents of $422 million, up from the prior quarter’s $109 million. As of May 5, 2023, its long-term debt (net of the current portion) was $2.33 billion.
The company generated operating and free cash flows of $82 million and $76 million, respectively, in the first quarter. In the fiscal first quarter, Science Applications paid out $21 million in dividends and repurchased shares worth $70 million.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share, payable on Jul 28 to shareholders of record as of Jul 14.
Raised Fiscal 2024 Guidance
Buoyed by the strong first-quarter performance, SAIC raised its guidance for the full-fiscal 2024. The company now anticipates revenues in the band of $7.125-$7.225 billion in fiscal 2024 instead of the earlier projected range of $7.05-$7.20 billion. Science Applications now expects adjusted earnings in the band of $7.00-$7.20 per share, up from the previous range of $6.80-$7.00.
However, management still expects to generate free cash flow between $460 million and $480 million in fiscal 2024. It continues to project the adjusted EBITDA margin between 9.2% and 9.4% in fiscal 2024.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have decreased 7.5% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Meta Platforms META, Manhattan Associates MANH and Blackbaud BLKB. While Meta and Manhattan Associates each sport a Zacks Rank #1 (Strong Buy), Blackbaud carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta's second-quarter 2023 earnings has been revised 8 cents northward to $2.87 per share in the past 30 days. For 2023, earnings estimates have been revised 2.4% upward to $12.04 per share in the past 30 days.
Meta’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missing the same on two occasions, the average surprise being 15.5%. Shares of META have surged 125.5% YTD.
The Zacks Consensus Estimate for Manhattan Associates' second-quarter 2023 earnings has been revised upward by a couple of cents to 72 cents per share for the past 60 days. For 2023, earnings estimates have moved upward by 17 cents to $2.87 per share in the past 60 days.
Manhattan Associates' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 33.6%. Shares of MANH have soared 52.4% YTD.
The Zacks Consensus Estimate for Blackbaud’s second-quarter 2023 earnings has been revised 2 cents northward to 93 cents per share in the past 30 days. For 2023, earnings estimates have increased to $3.75 per share from $3.68 30 days ago.
Blackbaud's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10.4%. Shares of BLKB have rallied 25.8% YTD.
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