US stock futures inch lower after Wall St marks fresh records on tech gains
Investing.com -- Science Applications International Corporation (NASDAQ:SAIC) shares fell 9.7% on Thursday after the technology integrator reported mixed second-quarter results, with earnings exceeding expectations but revenue falling short amid a challenging business environment that prompted the company to lower its full-year revenue guidance.
The defense and government services provider reported adjusted earnings of $3.63 per share for the second quarter, significantly beating analyst estimates of $2.24.
However, revenue declined 3% YoY to $1.77 billion, missing the consensus expectation of $1.87 billion.
"Our second quarter results reflect strong program performance, and our bookings reflect further momentum in our business development efforts; however, slower on-contract growth and continued delays in new business awards and new program ramps are contributing to a more challenging revenue environment than previously forecasted," said Toni Townes-Whitley, SAIC Chief Executive Officer.
The company secured $2.6 billion in net bookings during the quarter, achieving a book-to-bill ratio of 1.5, indicating strong future business potential despite current challenges. Year-to-date bookings reached $5.0 billion with a book-to-bill ratio of 1.4.
SAIC lowered its fiscal 2026 revenue guidance to $7.25-7.33 billion from the previous $7.60-7.75 billion, falling below analyst expectations of $7.63 billion.
However, the company raised its adjusted earnings outlook to $9.40-$9.60 per share, above the consensus of $8.92, and increased its free cash flow guidance to over $550 million.
Adjusted EBITDA margin improved to 10.5% from 9.4% in the same quarter last year, reflecting enhanced profitability across the company’s contract portfolio and cost recovery from a patent infringement settlement.
"We are responding purposefully by aligning our cost structure while sustaining key investments to drive long-term value creation," Townes-Whitley added.
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