Science Applications Int'l (SAIC) shares jump after earnings top estimates, raises guidance

December 5, 2022 11:40 AM EST
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Price: $101.98 -1.26%

Rating Summary:
    7 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 21 | New: 16
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Science Applications Int'l (NYSE: SAIC) jumped at the open on Monday after the company posted earnings before the bell, topping profit and revenue estimates.

SAIC shares hit a high of $117.94 in the early part of the session. At the time of writing, they are trading at $114.97, up 5.23%.

The company reported adjusted earnings of $1.90 per share on revenue of $1.91 billion. Earnings came in $0.16 better than the analyst estimate of $1.74, while revenue was above the consensus estimate of $1.87 billion.

Net bookings came in at $2 billion.

"Our results reflect continued strong performance from the team with notable momentum in new business capture and on-contract growth," said SAIC CEO Nazzic Keene. "We are confident that the investments we are making - both internally and via our capital deployment program - are aligned with maximizing long-term shareholder value."

The company also raised revenue and adjusted earnings per share guidance for fiscal 2023. It now expects earnings to be between $7.05 and $7.20 per share, versus the consensus of $7.08, with revenue expected to be approximately $7.6 billion, versus the consensus of $7.53 billion.

Following the report, Cowen analyst Cai von Rumohr told investors that "Q3 was mostly in line with SAIC's consistent grind-it-out pattern."

"Results were slight beats with decent 1.1x book-bill but light adj. FCF with low end of FY23 guide nudged up (ex- FCF). Initial F24 outlook slightly above street with a bridge to FY27 guided FCF of $14/shr. Investor response apt to be neutral/positive," wrote von Rumohr, who has an Outperform rating and a $120 price target on the stock.

By Sam Boughedda.

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