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Is a Beat Likely for Science Applications (SAIC) in Q4 Earnings?

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Science Applications International Corp. (SAIC - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Mar 28.

For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1.77 billion, indicating an improvement of 3.3% from the year-ago quarter. The consensus mark for earnings stands at $1.18 per share, suggesting a decline of 29.3% from the prior-year reported number.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.2%.

Factors to Note Ahead of Q4 Earnings

Science Applications’ fourth-quarter fiscal 2022 results are likely to reflect key contract wins, driven by a strong product portfolio. Higher demand for its technology solutions due to the ongoing digital transformation wave across the defense, space, intelligence and civilian markets is likely to have aided SAIC’s fourth-quarter performance.

The company’s capability to sustain its existing contracts along with the newly awarded ones across the customer portfolio might have acted as a tailwind. These include the U.S. Navy’s $1.1 billion contract, among other defense deals.

The acquisition of Halfaker and Associates may have resulted in incremental revenues in the quarter under review. The acquisition of Unisys Federal is expected to have continued aiding revenue growth in this quarter as well.

Strong demand for the company’s IT modernization services, which include advanced analytics, software and app modernization and cloud migration, may have favored the performance in the quarter to be reported.

However, the pandemic continued to disrupt the company’s supply-chain portfolio. This might have weighed on the top line in the quarter under review.

Earnings Whispers

Our proven model predicts an earnings beat for Science Applications this time. 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, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (49 cents per share) and the Zacks Consensus Estimate (48 cents per share), is +0.97% for SAIC. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Science Applications carries a Zacks Rank #2.

Other Stocks with the Favorable Combination

Per our model, Dave & Buster's Entertainment (PLAY - Free Report) , Fastenal (FAST - Free Report) and Washington Federal (WAFD - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.

Dave & Buster's Entertainment is set to report fourth-quarter fiscal 2022 results on Mar 28. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.93% at present. Dave & Buster's Entertainment’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 218.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly earnings is pegged at 59 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of $1.19. PLAY’s quarterly revenues are estimated to increase 214.2% year over year to $367.1 million.

Fastenal currently carries a Zacks Rank #2 and has an Earnings ESP of +0.46%. The company is slated to report its first-quarter 2022 results on Apr 13. Fastenal’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same on one occasion, the average surprise being 3.3%.

The Zacks Consensus Estimate for Fastenal’s first-quarter earnings stands at 44 cents per share, implying a year-over-year increase of 18.9%. FAST is estimated to report revenues of $1.67 billion, which suggests growth of 17.9% from the year-ago quarter.

Washington Federal carries a Zacks Rank #3 and has an Earnings ESP of +0.72%. The company is expected to report second-quarter fiscal 2022 results on Apr 12. Washington Federal’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.2%.

The Zacks Consensus Estimate for WAFD’s second-quarter earnings is pegged at 70 cents per share, indicating year-over-year growth of 25%. The consensus mark for revenues stands at $148.8 million, suggesting a year-over-year increase of 7.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.