Science Applications International Corp. (NYSE: SAIC) reported $2.03 billion in revenue for the first quarter of its 2024 fiscal year, up 2 percent from the prior-year period, and attributed the growth to a ramp-up on contracts.
The company said Monday net income for the three months ended May 5 climbed to $98 million from $74 million a year earlier, while adjusted diluted earnings were $2.14 per share, up from $1.88 per share.
SAIC’s first-quarter revenue was partially offset by contract completions and $37 million worth of expenses on the deconsolidation of the Forfeiture Support Associates joint venture.
Net bookings for the quarter reached $2.1 billion, reflecting a book-to-bill ratio of 1.1 and a trailing 12-month book-to-bill ratio of 1.0. Total backlog for the period came to $23.8 billion, $3.9 billion of which was funded.
SAIC stated an upward guidance revision for the full fiscal 2024, expecting to record annual revenue in the $7.13 billion-to-$7.23 billion range, compared to the previous forecast of $7.05 billion to $7.20 billion.
“This increase is driven primarily by two factors: roughly $35 million of outperformance from our supply chain business in 1Q and roughly $15 million from net improvements elsewhere,” Prabu Natarajan, SAIC’s chief financial officer, said during an earnings call with analysts.
In the same conference call, SAIC CEO Nazzic Keene also highlighted the company’s development on workforce retention and acquisition.
“While we attribute some of this to an industry-wide improvement in labor metrics, we believe SAIC is performing well against the industry benchmark for turnover and we are tracking ahead of our plan year-to-date on new hires and headcount,” the 2023 Wash100 Award recipient said.
SAIC shares opened $104.16 on Tuesday, higher than a previous close of $101.45.