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.
Science Applications (SAIC) Beats on Q3 Earnings & Revenues
Read MoreHide Full Article
Science Applications (SAIC - Free Report) reported strong third-quarter fiscal 2022 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. The company reported adjusted earnings of $1.85 per share, surpassing the Zacks Consensus Estimate of $1.45. The bottom line improved 14% year over year.
Revenues increased 4% from the year-ago quarter’s level to $1.90 billion, outpacing the consensus mark of $1.87 billion. The top line was mainly driven by contributions from the newly acquired Halfaker business and the ramp-up of new and existing contracts. Adjusting for the impact of acquired revenues, the metric moved up 2.1%.
Quarter in Detail
Net bookings for the fiscal third quarter were $1.4 billion, reflecting a book-to-bill ratio of 0.7. Science Applications’ estimated backlog of signed business deals was $24 billion, of which $3.4 billion was funded.
Non-GAAP operating income surged 10% year over year to $126 million, primarily driven by solid contract portfolios, and lower integration and indirect costs. Non-GAAP operating margin expanded 30 basis points (bps) to 6.6%.
Adjusted EBITDA increased 4% year over year to $171 million. Adjusted EBITDA margin remained flat year over year at 9%.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications ended the fiscal third quarter with cash and cash equivalents of $148 million, up from the prior quarter’s $133 million. As of Oct 29, 2021, its long-term debt (net of current portion) was $2.43 billion.
The company generated operating cash flows of $134 million in the second quarter and $415 million in the first nine months of fiscal 2022. Free cash flow was $124 million in the second quarter and $373 million in the first three quarters of fiscal 2022.
Both free cash flow and cash through operating activities reflected a negative impact from the payroll tax payments associated with the Coronavirus Aid, Relief, and Economic Security Act.
In the fiscal third quarter, Science Applications deployed $97 million of capital, which included $21 million for dividend payments, $63 million for planned share repurchases, $3 million for acquisitions and $10 million for capital expenditure. SAIC made $23 million of mandatory debt repayment during the quarter.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share to be payable on Jan 28, 2022, to shareholders of record as of Jan 14, 2022.
Guidance
Science Applications updated its fiscal 2022 guidance. It now anticipates revenues between $7.35 billion and $7.40 billion compared with the previously guided range of $7.30-$7.40 billion. The top line indicates a negative impact of $125 million on the supply chain portfolio, stemming from the pandemic.
The company expects adjusted earnings in the range of $6.75-$6.95 per share, up from the previous range of $6.50-$6.70 per share. The projected adjusted EBITDA margin is anticipated at 9-9.1%, up from the previously estimated 8.9-9%.
Free cash flow is now expected between $450 million and $470 million for fiscal 2022 instead of the earlier forecast $430-$470 million.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past 30 days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last 30 days.
Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. The GOOGL stock has rallied 63.5% year to date (YTD).
The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the past 30 days. For 2021, earnings estimates have moved upward by 6.3% to $5.06 per share over the past 30 days.
Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 51% YTD.
The consensus mark for PTC’s first-quarter fiscal 2022 earnings has been revised downward to $1.00 per share from $1.04 30 days ago. For fiscal 2022, earnings estimates have been revised upward by 9 cents to $4.19 per share in the last 30 days.
PTC’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have declined 2.5% YTD.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Science Applications (SAIC) Beats on Q3 Earnings & Revenues
Science Applications (SAIC - Free Report) reported strong third-quarter fiscal 2022 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. The company reported adjusted earnings of $1.85 per share, surpassing the Zacks Consensus Estimate of $1.45. The bottom line improved 14% year over year.
Revenues increased 4% from the year-ago quarter’s level to $1.90 billion, outpacing the consensus mark of $1.87 billion. The top line was mainly driven by contributions from the newly acquired Halfaker business and the ramp-up of new and existing contracts. Adjusting for the impact of acquired revenues, the metric moved up 2.1%.
Quarter in Detail
Net bookings for the fiscal third quarter were $1.4 billion, reflecting a book-to-bill ratio of 0.7. Science Applications’ estimated backlog of signed business deals was $24 billion, of which $3.4 billion was funded.
Non-GAAP operating income surged 10% year over year to $126 million, primarily driven by solid contract portfolios, and lower integration and indirect costs. Non-GAAP operating margin expanded 30 basis points (bps) to 6.6%.
Adjusted EBITDA increased 4% year over year to $171 million. Adjusted EBITDA margin remained flat year over year at 9%.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
Balance Sheet & Cash Flow Details
Science Applications ended the fiscal third quarter with cash and cash equivalents of $148 million, up from the prior quarter’s $133 million. As of Oct 29, 2021, its long-term debt (net of current portion) was $2.43 billion.
The company generated operating cash flows of $134 million in the second quarter and $415 million in the first nine months of fiscal 2022. Free cash flow was $124 million in the second quarter and $373 million in the first three quarters of fiscal 2022.
Both free cash flow and cash through operating activities reflected a negative impact from the payroll tax payments associated with the Coronavirus Aid, Relief, and Economic Security Act.
In the fiscal third quarter, Science Applications deployed $97 million of capital, which included $21 million for dividend payments, $63 million for planned share repurchases, $3 million for acquisitions and $10 million for capital expenditure. SAIC made $23 million of mandatory debt repayment during the quarter.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share to be payable on Jan 28, 2022, to shareholders of record as of Jan 14, 2022.
Guidance
Science Applications updated its fiscal 2022 guidance. It now anticipates revenues between $7.35 billion and $7.40 billion compared with the previously guided range of $7.30-$7.40 billion. The top line indicates a negative impact of $125 million on the supply chain portfolio, stemming from the pandemic.
The company expects adjusted earnings in the range of $6.75-$6.95 per share, up from the previous range of $6.50-$6.70 per share. The projected adjusted EBITDA margin is anticipated at 9-9.1%, up from the previously estimated 8.9-9%.
Free cash flow is now expected between $450 million and $470 million for fiscal 2022 instead of the earlier forecast $430-$470 million.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader technology sector include Google-parent Alphabet (GOOGL - Free Report) , Diodes (DIOD - Free Report) and PTC Inc. (PTC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past 30 days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last 30 days.
Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. The GOOGL stock has rallied 63.5% year to date (YTD).
The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the past 30 days. For 2021, earnings estimates have moved upward by 6.3% to $5.06 per share over the past 30 days.
Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 51% YTD.
The consensus mark for PTC’s first-quarter fiscal 2022 earnings has been revised downward to $1.00 per share from $1.04 30 days ago. For fiscal 2022, earnings estimates have been revised upward by 9 cents to $4.19 per share in the last 30 days.
PTC’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have declined 2.5% YTD.