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SAIC Wins $150M Airport Technology Support Contract From TSA

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Science Applications International Corporation (SAIC - Free Report) recently secured a blanket purchase agreement from the Transportation Security Administration (“TSA”) to continue performing the operational testing and evaluation of TSA airport screening equipment and non-screening systems. The contract has an estimated value of $150 million.

As part of the agreement, SAIC will continue to provide test planning and performance, data analysis and evaluation of passenger and baggage screening equipment. The deal ensures that TSA will continue to receive the critical support needed for validating the operational effectiveness, suitability and cyber resilience of systems used for the safe transportation of people and cargo.

Bob Genter, president of the Defense and Civilian Sector at (SAIC - Free Report) , said, “We continue to use our technology to support TSA’s mission of securing people and commerce in our nation’s airports.” He further added, “SAIC’s cost-effective system evaluation capabilities support essential airport screening equipment used every day to protect travelers in the U.S., as well as non-screening systems that support critical DHS and TSA operations.”

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 new ones. Increased federal spending is anticipated to accelerate the pace of contract awards, which will be beneficial for SAIC’s top line.

Last month, the company secured a single-award contract worth $757 million from the U.S. Army Enterprise Service Desk to provide software development and management services. In September 2022, it won the Systems and Software Assurance Services 2 contract worth $170 million from the National Aeronautics and Space Administration.

Further, in September, Science Applications inked a strategic partnership with the Laconia, NH-based defense and space manufacturing startup, Rogue Space Systems Corporation. Per the agreement, SAIC will deliver solutions that provide In-Orbit Service Assembly and Manufacturing, asset inspection and Space Situational Awareness services.

In August, Science Applications 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 the Falconer Weapon System’s operational capabilities while transforming it into a modernized, highly capable and sustainable system.

In the third quarter of fiscal 2023, SAIC revenues rose 1% year over year to $1.91 billion. The increase was primarily due to the ramp-up of new and existing contracts, partially offset by contract completions and lower accelerated amortization on certain off-market liability contracts.

The Zacks Consensus Estimate for Science Applications’ fourth-quarter fiscal 2023 revenues is pegged at $1.85 billion compared with the year-ago quarter’s $1.78 billion.

Zacks Rank & Stocks to Consider

Currently, SAIC carries a Zacks Rank #3 (Hold). Shares of the company have soared 33.6% year to date (YTD).

Some better-ranked stocks from the broader technology sector are Celestica (CLS - Free Report) , Zscaler (ZS - Free Report) and Blackbaud (BLKB - Free Report) . Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Blackbaud each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have moved up 9.4% to $1.86 per share in the past 60 days.

CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have increased 2.5% YTD.

The Zacks Consensus Estimate for Zscaler's second-quarter fiscal 2023 earnings has been revised 3 cents upward to 29 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved up by 5 cents to $1.23 per share in the past 30 days.

ZS’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 27.3%. Shares of the company have declined 61.6% YTD.

The Zacks Consensus Estimate for Blackbaud's fourth-quarter 2022 earnings has been revised southward by 3 cents to 58 cents per share over the past 60 days. For 2022, earnings estimates have moved upward by 4 cents to $2.59 per share in the past 60 days.

Blackbaud's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.9%. Shares of BLKB have slumped 25.8% YTD.

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