We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Awaits Science Applications (SAIC) in Q2 Earnings?
Read MoreHide Full Article
Science Applications International Corporation (SAIC - Free Report) is set to report second-quarter fiscal 2021 earnings on Sep 2.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two, the average surprise being 5.1%.
For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $1.79 billion, indicating 12.6% improvement from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.42 per share, suggesting a rise of 5.2% from the prior-year quarter’s reported number.
Science Applications International Corporation Price and Consensus
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Science Applications’ second-quarter fiscal 2021 results are likely to reflect a strong product portfolio, which has been aiding contract wins. The company’s capability to sustain its existing contracts along with the newly-awarded ones across the customer portfolio is likely to have been a tailwind.
Notably, the company won more than $3.6 billion in national security contracts during the second quarter, which gives us an idea about its performance in the quarter to be reported.
Moreover, the integration of Engility is expected to have been a key driver this earnings season. The acquisition is also likely to have boosted the company’s margin profile and cash-flow generation.
Besides, revenue dis-synergies due to the elimination of prime sub-duplicate revenues, which affected the top line throughout the last fiscal year, ended in the fourth quarter of fiscal 2020. This is expected to have aided second-quarter performance.
However, on its last earnings call, Science Applications had stated that the COVID-19 pandemic will negatively impact its fiscal 2021 revenues and earnings. We expect second-quarter results to reflect the impact of the pandemic as well.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Science Applications this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Science Applications has an Earnings ESP of -4.93% and carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:
Ambarella (AMBA - Free Report) has an Earnings ESP of +100.00% and carries a Zacks Rank of 3, at present.
AutoZone (AZO - Free Report) has an Earnings ESP of +5.62% and carries a Zacks Rank of 3, currently.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Shutterstock
What Awaits Science Applications (SAIC) in Q2 Earnings?
Science Applications International Corporation (SAIC - Free Report) is set to report second-quarter fiscal 2021 earnings on Sep 2.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two, the average surprise being 5.1%.
For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $1.79 billion, indicating 12.6% improvement from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.42 per share, suggesting a rise of 5.2% from the prior-year quarter’s reported number.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Science Applications’ second-quarter fiscal 2021 results are likely to reflect a strong product portfolio, which has been aiding contract wins. The company’s capability to sustain its existing contracts along with the newly-awarded ones across the customer portfolio is likely to have been a tailwind.
Notably, the company won more than $3.6 billion in national security contracts during the second quarter, which gives us an idea about its performance in the quarter to be reported.
Moreover, the integration of Engility is expected to have been a key driver this earnings season. The acquisition is also likely to have boosted the company’s margin profile and cash-flow generation.
Besides, revenue dis-synergies due to the elimination of prime sub-duplicate revenues, which affected the top line throughout the last fiscal year, ended in the fourth quarter of fiscal 2020. This is expected to have aided second-quarter performance.
However, on its last earnings call, Science Applications had stated that the COVID-19 pandemic will negatively impact its fiscal 2021 revenues and earnings. We expect second-quarter results to reflect the impact of the pandemic as well.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Science Applications this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Science Applications has an Earnings ESP of -4.93% and carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:
Zscaler (ZS - Free Report) has an Earnings ESP of +21.74% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ambarella (AMBA - Free Report) has an Earnings ESP of +100.00% and carries a Zacks Rank of 3, at present.
AutoZone (AZO - Free Report) has an Earnings ESP of +5.62% and carries a Zacks Rank of 3, currently.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>