Science Applications ( SAIC Quick Quote SAIC - Free Report) recently secured the Systems and Software Assurance Services 2 (“SAS2”) contract, worth $170 million, from the National Aeronautics and Space Administration (“NASA”).
Under the five-year contract, Science Applications will continue to perform independent verification and validation (IV&V) of space systems and software. The company will also provide safety & mission assurance, software assurance and mission protection services to the American space agency.
SAIC's expertise in space engineering solutions will aid NASA to accomplish milestones in its ongoing human space exploration programs, Earth science and planetary science missions.
Science Applications is currently focusing on the federal government marketplace and capturing more market share. It intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy, and strengthening existing customer relationships while building newer ones. Increased federal spending is anticipated to accelerate the pace of contract awards, which, in turn, will be beneficial for SAIC’s top-line growth.
In September, the company inked a strategic partnership with the Laconia, NH-based defense and space manufacturing start-up, Rogue Space Systems Corporation, to deliver solutions that provide In-Orbit Service Assembly and Manufacturing, asset inspection and Space Situational Awareness services.
In August, SAIC received a Falconer Air Operations Center Weapon System Sustainment contract worth $319 million from the U.S Air Force. Per the deal, SAIC will act as a system integrator to optimize Falconer Weapon System’s operational capabilities while transforming it into a modernized, highly capable and sustainable system.
During second-quarter fiscal 2023, SAIC reported revenues of $1.83 billion, mainly driven by contributions from the newly acquired Halfaker business and the ramp-up of new and existing contracts.
The Zacks Consensus Estimate for SAIC’s third-quarter fiscal 2023 revenues is pegged at $1.86 billion compared with the year-ago quarter’s $1.90 billion.
Zacks Rank & Stocks to Consider
SAIC currently carries a Zacks Rank #3 (Hold). Shares of SAIC jumped 4.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Keysight Technologies ( KEYS Quick Quote KEYS - Free Report) , Digi International ( DGII Quick Quote DGII - Free Report) and Paylocity Holding ( PCTY Quick Quote PCTY - Free Report) , each flaunting 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 Keysight's fourth-quarter fiscal 2022 earnings has been revised 10 cents north to $1.99 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 30 cents north to $7.47 per share in the past 60 days. KEYS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.32%. Shares of the company have declined 4.4% in the past year. The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 30 days. DGII's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 64.9% in the past year. The Zacks Consensus Estimate for Paylocity's first-quarter fiscal 2023 earnings has been revised by 4 cents north to 61 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 14.7% to $3.58 per share in the past 60 days. PCTY's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 50.9%. Shares of the company have declined 9.8% in the past year.