Science Applications International Corporation ( SAIC Quick Quote SAIC - Free Report) recently announced that it secured approximately $400 million worth of contracts from the United States space and intelligence communities in the second quarter of fiscal 2023. This is in addition to the Falconer Air Operations Center (“AOC”) Weapon System Sustainment contract worth $319 million received from the U.S. Air Force in mid-August this year.
SAIC disclosed that most of the contracts involve services in systems integration and delivery work, new cloud programs and Joint All Domain Command and Control (JADC2) effort areas. Clients requiring these services belong to the classified space and intelligence communities.
Consecutive Contract Wins
Science Applications is benefiting from the continued flow of high-value contracts. The record level of awards reflects its disciplined business-development actions, consistent operational excellence and high customer satisfaction.
Earlier in August, SAIC received a $163 million contract from the U.S. Navy to support the design, development, integration, modernization, sustainment and life cycle support to shore networks, network components and network service solutions for the Naval Information Warfare Center Pacific Shore Networks Branch located in San Diego, CA.
Prior to that, the company teamed up with Kessel Run, a Division within the Air Force Life Cycle Management Center’s Digital Directorate to provide global AOCs with a reliable, secure and modernized mission system to plan and conduct air operations. This was part of the $319 million worth Falconer AOC contract mentioned above.
In May, Science Applications announced that it was awarded a $390 million task order by the General Services Administration on behalf of the U.S. Space Force/Space Systems Command to continue providing systems engineering and integration services to help modernize the nation’s Global Positioning Systems program.
For the first quarter of fiscal 2023, Science Applications reported revenues of $2 billion, which rose 6% from the year-ago quarter. This was mainly driven by contributions from the newly acquired Halfaker business and the ramp-up of new and existing contracts. As of Apr 29, 2022, the company’s total contract backlog was $24.1 billion. The government as a big client lends stability to the business and moderates the fluctuation in revenues.
The Zacks Consensus Estimate for SAIC’s second-quarter fiscal 2023 revenues is pegged at $1.82 billion, suggesting a year-over-year fall of 0.83%.
Zacks Rank & Key Picks
Science Applications currently carries a Zacks Rank #3 (Hold). Shares of SAIC have increased 11.1% year to date.
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