This post was originally published on this site
Science Applications International (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 $1.87B.
Net bookings came in at $2B.
“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 $7.6B, versus the consensus of $7.53B.
Following the report, Cowen analysts 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 the analysts, who have an Outperform rating and a $120 price target on the stock.
