SAIC 3Q Earnings Top, Revenue Meets Wall Street Forecasts

SAIC logoScience Applications International Corp. (NYSE: SAIC) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has reported earnings of 73 cents per share for the third quarter of the company’s 2016 fiscal year.

That figure exceeded the consensus Wall Street estimate by 8 cents and does not include approximately $1 million in acquisition-and-integration costs related to SAIC’s buy of Scitor that closed in May.

SAIC, which runs its fiscal calendar on a February-January basis, reported 77 cents per share for the same quarter in fiscal 2015.

The McLean, Virginia-based government services provider posted a total third quarter net profit of $34 million, down 8 percent from the third quarter in fiscal 2015.

Revenue fell in-line with analyst forecasts at $1.13 billion to register an approximate 14.14-percent increase from the prior year period on the Scitor acquisition,  which contributed nearly $148 million in sales during the quarter.

Internal revenue including Scitor’s historical sales was down approximately 1.9 percent year-over-year on lower material volume on supply chain contracts and lower revenues of $10 million for Scitor compared to its prior year quarter.

Chief Financial Officer John Hartley told investors in a subsequent call Wednesday SAIC could see continued revenue contraction in its fourth quarter on fewer working days due in part to the Christmas and New Year’s holidays in December.

Funded backlog as of Oct. 30 sat at $2.07 billion compared to $1.93 billion in the same quarter for fiscal 2015 with an additional $1.1 billion obtained during the second quarter via Scitor.

SAIC reported a total backlog of $7.41 billion that represents estimated future revenues from negotiated contracts for which funds has not been appropriated or authorized, and unexercised priced contract options.

Shares of SAIC have gained 1.43 percent since the year’s start and are down a nominal 0.2 percent over 12 months.

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