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What Awaits Science Applications (SAIC) in Q1 Earnings?

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Science Applications International Corporation (SAIC - Free Report) is set to report first-quarter fiscal 2022 earnings on Jun 3.

The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one, the average surprise being 8.83%.

For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $1.79 billion, indicating a 1.77% improvement from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.49 per share, suggesting a rise of 7.97% 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’ first-quarter fiscal 2022 results are likely to reflect key contract wins, driven by a strong product portfolio. 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.

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.

However, the company’s supply-chain portfolio is likely to have continued to be affected by the impacts of the COVID-19 pandemic. This is expected to have been an overhang on the top line during the quarter under review.

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 a 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 currently has a Zacks Rank of #4 (Sell) and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Signet Jewelers Ltd. (SIG - Free Report) has an Earnings ESP of +2.84% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chewy Inc. (CHWY - Free Report) has an Earnings ESP of +133.34% and currently, a Zacks Rank of 3.

Akamai Technologies, Inc. (AKAM - Free Report) has an Earnings ESP of +0.33% and currently, a Zacks Rank of 3.

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