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SAIC posts in-line Q1 earnings, slight revenue beat

EditorRachael Rajan
Published 03/06/2024, 12:34
© Reuters.
SAIC
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RESTON, Va. - Science Applications (NASDAQ:SAIC) International Corporation (NASDAQ: SAIC), a premier Fortune 500® technology integrator, reported first-quarter earnings per share (EPS) of $1.92, aligning with analyst projections.

Revenue for the quarter marginally surpassed expectations, coming in at $1.85 billion against the consensus estimate of $1.84 billion, marking a slight increase from the same quarter last year.

The company's performance in the first quarter of fiscal year 2025 saw a 0.4% organic growth, reflecting the impact of divestitures. However, revenues dipped by 9% compared to the previous year, primarily due to the sale of the logistics and supply chain management business and contract completions, which was somewhat offset by the ramp-up in volume on existing and new contracts.

SAIC's net income stood at $77 million, with adjusted EBITDA reaching $166 million, or 9.0% of revenues. The diluted earnings per share for the quarter was $1.48, a decrease from $1.79 in the prior year's quarter. The adjusted diluted EPS also saw a reduction from $2.14 to $1.92 year-over-year (YoY). The company's net bookings for the quarter were approximately $2.6 billion, boasting a book-to-bill ratio of 1.4.

For fiscal year 2025, SAIC has reaffirmed its financial guidance, expecting revenue between $7.35 billion and $7.50 billion, with adjusted EBITDA anticipated to be in the range of $680 million to $700 million.

The adjusted EBITDA margin is projected to be between 9.2% and 9.4%, and the adjusted diluted EPS is forecasted to be between $8.00 and $8.20. This guidance suggests a midpoint slightly below the analyst consensus of $8.10 for adjusted EPS and squarely in the middle for revenue estimates.

"We reported solid financial results in the quarter as we began executing against our enterprise growth strategy introduced at SAIC's 2024 Investor Day," said SAIC CEO Toni Townes-Whitley. "We are confident that the strategy and investments we are making best position the company to maximize long-term shareholder value."

SAIC's cash flows from operating activities were $98 million, a 20% increase from the prior year. The company's capital deployment during the quarter amounted to $107 million, including plan share repurchases, cash dividends, and capital expenditures.

As the company continues its operations, it remains focused on driving the nation's digital transformation across defense, space, civilian, and intelligence markets, with a workforce of approximately 24,000 people and annual revenues of about $7.4 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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