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) Q4 Earnings Beat, Revenues Up Y/Y
Read MoreHide Full Article
Science Applications (SAIC - Free Report) reported strong fourth-quarter fiscal 2022 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. The company reported adjusted earnings of $1.50 per share, surpassing the Zacks Consensus Estimate of $1.18. The bottom line decreased 10.2% year over year.
Revenues increased 4% from the year-ago quarter’s level to $1.8 billion, outpacing the consensus mark of $1.77 billion. The top line was primarily 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 1.4%.
Quarter in Detail
Net bookings for the fiscal fourth quarter were $2.2 billion, reflecting a book-to-bill ratio of 1.2. Science Applications’ estimated backlog of signed business deals was $24.1 billion, of which $3.5 billion was funded.
Non-GAAP operating income declined 2.8% year over year to $106 million. Non-GAAP operating margin contracted 40 basis points (bps) to 5.9%.
Science Applications International Corporation Price, Consensus and EPS Surprise
Adjusted EBITDA decreased 8.2% year over year to $146 million. Adjusted EBITDA margin decreased to 8.2%.
Balance Sheet & Cash Flow Details
Science Applications ended the fiscal fourth quarter with cash and cash equivalents of $106 million, down from the prior quarter’s $148 million. As of Jan 2, 2022, its long-term debt (net of current portion) was $2.37 billion.
The company generated operating cash flows of $103 million in the fourth quarter and $518 million in fiscal 2022. Free cash flow was $94 million in the fourth quarter and $467 million in the full fiscal 2022.
In the fiscal fourth quarter, Science Applications deployed $102 million of capital, which included $21 million for dividend payments, $72 million for planned share repurchases, and $9 million for capital expenditure. SAIC made $35 million of voluntary term loan repayment during the quarter.
In fiscal 2022, Science Application bought back shares worth $211 million.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share to be payable on Apr 29, 2022, to shareholders of record as of Apr 14, 2022.
Full-Year Highlights
For the full fiscal 2022, Science Applications reported revenues of $7.4 billion, indicating an improvement of 5% year over year. Adjusting for the impact of acquired and divested revenues, the metric moved up 2.5%.
It reported adjusted earnings of $7.27 per share compared with the prior year’s $6.27 per share.
Adjusted EBITDA increased 9% year over year to $686 million during fiscal 2022. Adjusted EBITDA margin increased 40 bps year over year to 9.3%.
Non-GAAP operating income was $519 million compared with fiscal 2021’s $445 million. Consequently, the margin expanded 70 bps to 7% in fiscal 2022.
Guidance
Science Applications anticipates revenues between $7.35 billion and $7.55 billion for fiscal 2022. The company expects adjusted earnings to be $6.80-$7.10 per share.
The projected adjusted EBITDA margin is anticipated to be 8.9%.
Free cash flow is expected to be between $500 million and $530 million for fiscal 2022.
Zacks Rank & Key Picks
Science Applications currently carries a Zacks Rank #3 (Hold). Shares of SAIC have climbed 16% in the past year.
The Zacks Consensus Estimate for Advanced Micro Devices’ first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, Advanced Micro Devices’ earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17%. Shares of Advanced Micro Devices have surged 55.8% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 5 cents to 92 cents per share over the past 60 days. For 2022, Axcelis’ earnings estimates have moved north by 12.4% to $3.99 per share in the past 60 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have soared 109.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 60 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 8.7% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Science Applications (SAIC) Q4 Earnings Beat, Revenues Up Y/Y
Science Applications (SAIC - Free Report) reported strong fourth-quarter fiscal 2022 results, wherein both earnings and revenues topped the Zacks Consensus Estimate. The company reported adjusted earnings of $1.50 per share, surpassing the Zacks Consensus Estimate of $1.18. The bottom line decreased 10.2% year over year.
Revenues increased 4% from the year-ago quarter’s level to $1.8 billion, outpacing the consensus mark of $1.77 billion. The top line was primarily 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 1.4%.
Quarter in Detail
Net bookings for the fiscal fourth quarter were $2.2 billion, reflecting a book-to-bill ratio of 1.2. Science Applications’ estimated backlog of signed business deals was $24.1 billion, of which $3.5 billion was funded.
Non-GAAP operating income declined 2.8% year over year to $106 million. Non-GAAP operating margin contracted 40 basis points (bps) to 5.9%.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
Adjusted EBITDA decreased 8.2% year over year to $146 million. Adjusted EBITDA margin decreased to 8.2%.
Balance Sheet & Cash Flow Details
Science Applications ended the fiscal fourth quarter with cash and cash equivalents of $106 million, down from the prior quarter’s $148 million. As of Jan 2, 2022, its long-term debt (net of current portion) was $2.37 billion.
The company generated operating cash flows of $103 million in the fourth quarter and $518 million in fiscal 2022. Free cash flow was $94 million in the fourth quarter and $467 million in the full fiscal 2022.
In the fiscal fourth quarter, Science Applications deployed $102 million of capital, which included $21 million for dividend payments, $72 million for planned share repurchases, and $9 million for capital expenditure. SAIC made $35 million of voluntary term loan repayment during the quarter.
In fiscal 2022, Science Application bought back shares worth $211 million.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share to be payable on Apr 29, 2022, to shareholders of record as of Apr 14, 2022.
Full-Year Highlights
For the full fiscal 2022, Science Applications reported revenues of $7.4 billion, indicating an improvement of 5% year over year. Adjusting for the impact of acquired and divested revenues, the metric moved up 2.5%.
It reported adjusted earnings of $7.27 per share compared with the prior year’s $6.27 per share.
Adjusted EBITDA increased 9% year over year to $686 million during fiscal 2022. Adjusted EBITDA margin increased 40 bps year over year to 9.3%.
Non-GAAP operating income was $519 million compared with fiscal 2021’s $445 million. Consequently, the margin expanded 70 bps to 7% in fiscal 2022.
Guidance
Science Applications anticipates revenues between $7.35 billion and $7.55 billion for fiscal 2022. The company expects adjusted earnings to be $6.80-$7.10 per share.
The projected adjusted EBITDA margin is anticipated to be 8.9%.
Free cash flow is expected to be between $500 million and $530 million for fiscal 2022.
Zacks Rank & Key Picks
Science Applications currently carries a Zacks Rank #3 (Hold). Shares of SAIC have climbed 16% in the past year.
Some better-ranked stocks from the broader computer and technology sector are Advanced Micro Devices (AMD - Free Report) and Axcelis Technologies (ACLS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Micro Devices’ first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, Advanced Micro Devices’ earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17%. Shares of Advanced Micro Devices have surged 55.8% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 5 cents to 92 cents per share over the past 60 days. For 2022, Axcelis’ earnings estimates have moved north by 12.4% to $3.99 per share in the past 60 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have soared 109.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 60 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 8.7% in the past year.