Science Applications International Corporation ( SAIC Quick Quote SAIC - Free Report) is set to report second-quarter fiscal 2023 earnings on Sep 1.
The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 23.6%.
For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $1.82 billion, indicating a 0.8% decline from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.68 per share, suggesting a decline of 14.7% from the prior-year quarter’s reported number.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note Ahead of Q2 Results
Science Applications’ second-quarter fiscal 2023 results are likely to benefit from the higher demand for its technology solutions due to the ongoing digital transformation wave across the defense, space, intelligence and civilian markets. The company’s capability to sustain its existing contracts, along with newly awarded ones across the customer portfolio, might have acted as a tailwind.
The acquisition of Halfaker and Associates may have resulted in incremental revenues in the quarter under review. The acquisition of Koverse is expected to have continued aiding revenue growth in this quarter as well.
The 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, Science Applications’ supply-chain portfolio is likely to have continued to be affected by the impacts of the pandemic and ongoing geopolitical issues worldwide. This is expected to have been an overhang on the top line during the quarter under review.
Additionally, the rising component costs, along with increasing labor and logistics expenses, are anticipated to have negatively impacted SAIC’s bottom line in the second 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 a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Science Applications currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter. Stocks With the Favorable Combination
Per our model,
Campbell Soup ( CPB Quick Quote CPB - Free Report) , Dave & Buster's Entertainment ( PLAY Quick Quote PLAY - Free Report) and MasterCraft Boat ( MCFT Quick Quote MCFT - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Campbell Soup carries a Zacks Rank #3 and has an Earnings ESP of +0.60%. The company is slated to report fourth-quarter fiscal 2022 results on Sep 1. Campbell Soup’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.8%. You can see
. the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for CPB’s fiscal fourth-quarter earnings is pegged at 56 cents per share, indicating a year-over-year increase of 1.8%. The consensus mark for revenues stands at $1.98 billion, suggesting a year-over-year increase of 5.5%.
Dave & Buster's Entertainment will report second-quarter fiscal 2023 results on Sep 7. The company carries a Zacks Rank #3 and has an Earnings ESP of +2.97% at present. Dave & Buster's Entertainment’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 41.1%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.01 per share, suggesting a year-over-year decline of 5.6%. PLAY’s quarterly revenues are estimated to increase 14.5% year over year to $432.3 million.
MasterCraft currently carries a Zacks Rank #3 and has an Earnings ESP of +1.74%. The company is slated to report its fourth-quarter fiscal 2022 results on Sep 8. MasterCraft’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17.4%.
The Zacks Consensus Estimate for MasterCraft’s fourth-quarter earnings stands at $1.49 per share, implying a year-over-year increase of 52%. MCFT is estimated to report revenues of $195.1 million, which suggests an increase of 25.5% from the year-ago quarter.
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