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What Awaits Science Applications (SAIC) in Q3 Earnings?
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Science Applications International Corporation (SAIC - Free Report) is set to report third-quarter fiscal 2021 earnings on Dec 3.
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 7.2%.
For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.83 billion, indicating a 12.4% improvement from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.53 per share, suggesting a rise of 10.1% from the prior-year quarter’s reported number.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Science Applications’ third-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.
Science Applications International Corporation Price and Consensus
The company’s contract wins in the third quarter include $878 million worth of contract from the U.S. General Services Administration, multiple defense contracts worth $342 million, U.S. Navy contract worth $49.5 million and more. Notably, the company had a total contract backlog of $19.4 billion, as of Jul 31, 2020.
Moreover, the acquisition of Unisys Federal is expected to have aided the company’s growth prospects and driven customer base expansion. It is also likely to have boosted the company’s margin profile by reducing the overall costs in the quarter under review.
Additionally, strong demand for the company’s IT modernization services, which include advanced analytics, software and app modernization, and cloud migration, is anticipated to have been a key catalyst.
Further, the company introduced the SAIC R3 portfolio of solutions to enable government agencies to meet the new work challenges posed by the coronavirus-led work-from-home environment. This is expected to have widened the company’s portfolio bandwidth and driven user acquisition.
Markedly, Science Applications’ net bookings were around $4.6 billion and the book-to-bill ratio was 2.6 in the last reported quarter.
Moreover, in the previous quarter, the company stated that the COVID-19 pandemic had a limited impact on its performance, with the effect on net free cash flows being negligible. The momentum is likely to have continued in the to-be-reported quarter.
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 0.00% and a Zacks Rank of 3.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and a Zacks Rank of 2.
Cracker Barrel Old Country Store (CBRL - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 2.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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What Awaits Science Applications (SAIC) in Q3 Earnings?
Science Applications International Corporation (SAIC - Free Report) is set to report third-quarter fiscal 2021 earnings on Dec 3.
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 7.2%.
For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.83 billion, indicating a 12.4% improvement from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.53 per share, suggesting a rise of 10.1% from the prior-year quarter’s reported number.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Science Applications’ third-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.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
The company’s contract wins in the third quarter include $878 million worth of contract from the U.S. General Services Administration, multiple defense contracts worth $342 million, U.S. Navy contract worth $49.5 million and more. Notably, the company had a total contract backlog of $19.4 billion, as of Jul 31, 2020.
Moreover, the acquisition of Unisys Federal is expected to have aided the company’s growth prospects and driven customer base expansion. It is also likely to have boosted the company’s margin profile by reducing the overall costs in the quarter under review.
Additionally, strong demand for the company’s IT modernization services, which include advanced analytics, software and app modernization, and cloud migration, is anticipated to have been a key catalyst.
Further, the company introduced the SAIC R3 portfolio of solutions to enable government agencies to meet the new work challenges posed by the coronavirus-led work-from-home environment. This is expected to have widened the company’s portfolio bandwidth and driven user acquisition.
Markedly, Science Applications’ net bookings were around $4.6 billion and the book-to-bill ratio was 2.6 in the last reported quarter.
Moreover, in the previous quarter, the company stated that the COVID-19 pandemic had a limited impact on its performance, with the effect on net free cash flows being negligible. The momentum is likely to have continued in the to-be-reported quarter.
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 0.00% and a Zacks Rank of 3.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:
Construction Partners (ROAD - Free Report) has an Earnings ESP of +16.02% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and a Zacks Rank of 2.
Cracker Barrel Old Country Store (CBRL - Free Report) has an Earnings ESP of +2.76% and a Zacks Rank of 2.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>