Yahoo Finance Science Applications (SAIC) Secures Contract Worth $232 Million
Science Applications International Corporation SAIC has secured a contract worth $232 million from the U.S. Air Force's 774th Enterprise Sourcing Squadron. Under this contract, SAIC is set to develop signals intelligence and electronic warfare systems for the U.S. Army.
This new task order for SAIC was carried out through a multiple-award contract vehicle, which is managed by the Department of Defense Information Analysis Center (DoD IAC). The DoD IAC assists the Department of Defense and federal government with its expertise in research and technical data management.
The company has received multiple contracts to equip the Department of Defence with modernized technology in 2024. Contracts from the U.S. Army Reserve, Department of Veteran Affairs, the U.S. Navy, National Security, Office of the Under Secretary of Defense for Research and Engineering, and the U.S. Space Force have been adding to SAIC’s long-term revenue prospects.
Science Applications is benefiting from its increasing market presence in the defense and federal space. In 2021, 2022 and 2023, almost 98% of its revenues were infused by the contracts it secured from the U.S. government. The company has been in multiple-year contracts with military branches like the Navy, Airforce and Army and government agencies, including Homeland Security, NASA and the Department of State.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Having the U.S. Army and other government agencies as major clients stabilizes Science Applications’ business and revenues. The multi-year contracts generate revenues for several years. Recent proposals by the U.S. government on increasing the latest federal government budget are also a tailwind for the company.
However, the company faces some challenges, including rising component costs and increasing labor and logistics expenses, which are expected to affect the company’s near-term profit. Science Applications also faces tough competition from companies like ManTech International Corporation, CACI, Accenture and IBM. Increased competition from these players forces SAIC to continuously improve its offerings, shooting up its R&D expenses. It also leads to competitive pricing, resulting in low tender quotations that are likely to negatively impact SAIC.
Zacks Rank and Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have climbed 36% in the past year.
Some better-ranked stocks from the broader technology sector are AppFolio APPF, Celestica CLS and Alphabet GOOGL, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Appfolio’s 2024 earnings per share has been revised upward by 13 cents to $3.97 in the past 30 days. Shares of APPF have surged 74.5% in the past year.
The Zacks Consensus Estimate for CLS' 2024 earnings per share has been revised upward by 41 cents to $3.32 in the past 30 days. Shares of CLS have skyrocketed 339% in the past year.
The Zacks Consensus Estimate for GOOGL’s 2024 earnings per share has been revised upward by 80 cents to $7.57 in the past 30 days. Shares of GOOGL have jumped 44.7% in the past year.
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