SAIC 1Q Earnings, Revenue Beat Street Forecasts

SAIC logoScience Applications International Corp. (NYSE: SAIC) — one of 3 companies listed in Executive Mosaic’s GovCon Index — has reported first quarter earnings and revenue figures above the consensus Wall Street forecasts with sales contributions from the Scitor business acquired a year ago.

The McLean, Virginia-based government services contractor said earnings for the three-month period ended May 6 were 80 cents per share to exceed analyst expectations by 6 cents.

The 80-cent figure and analyst forecasts both exclude costs related to the acquisition and integration of Scitor, the intelligence community contractor SAIC purchased in May 2015 for $790 million.

First quarter earnings came in at 71 cents per share with those costs, while profit showed no year-over-year change at $33 million.

Revenue increased 19.8 percent to $1.21 billion versus Wall Street’s expectation of $1.15 billion as an extra week in the company’s first quarter and 2017 fiscal year helped contribute additional sales.

The company reported an internal revenue decline of 3.1 percent year-over-year, which adjusts results to include Scitor’s historical sales as if the transaction occured at the start of the fiscal 2016 first quarter.

Wall Street analysts expect the company to post $3.12 earnings per share for its full fiscal year with revenue at $4.51 billion.

As of Monday’s close, shares in SAIC have climbed 12.77 percent since the year started and are up 24.86 percent over 12 months.

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