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Science Applications International Corporation (SAIC - Free Report) delivered better-than-expected fourth-quarter fiscal 2023 results. The company reported adjusted earnings of $2.04 per share, surpassing the Zacks Consensus Estimate of $1.63. The bottom line increased 36% from the year-ago quarter’s earnings of $1.50 per share, mainly driven by higher revenues, a lower tax rate and an approximately 4% reduction in shares outstanding.
Revenues soared 10% year over year to $1.97 billion and outpaced the consensus mark of $1.86 billion. The increase was primarily due to the benefits of additional five working days during the quarter and the ramp-up of new and existing contracts, partially offset by contract completions.
Quarter in Detail
Net bookings for the fiscal fourth quarter were $1.3 billion, reflecting a book-to-bill ratio of 0.7. Net bookings for the full-fiscal 2023 were $7.4 billion, reflecting a book-to-bill ratio of 1. SAIC’s estimated backlog of signed business deals was $23.8 billion at the end of fiscal 2023, of which $3.6 billion was funded.
Science Applications International Corporation Price, Consensus and EPS Surprise
The non-GAAP operating income increased 23.6% year over year to $131 million. The non-GAAP operating margin expanded 80 basis points to 6.7%.
Adjusted EBITDA increased to $171 million from $146 million in the year-ago quarter. The adjusted EBITDA margin expanded to 8.7% from 8.2% in the year-ago quarter.
Balance Sheet & Cash Flow Details
Science Applications ended the fiscal fourth quarter with cash and cash equivalents of $109 million, up from the prior quarter’s $53 million. As of Feb 3, 2023, its long-term debt (net of the current portion) was $2.34 billion.
The company generated operating and free cash flows of $145 million and $148 million, respectively, in the fourth quarter. In the full-fiscal 2023, the company generated operating and free cash flows of $532 million and $457 million, respectively.
In the fiscal fourth quarter, Science Applications paid out $20 million in dividends and repurchased shares worth $56 million. During the full-fiscal 2023, the company paid out dividends of $83 million and bought back shares worth $245 million.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share, payable on Apr 28, 2023, to shareholders of record as of Apr 14, 2023.
Fiscal 2024 Guidance
The company anticipates revenues in the band of $7.05-$7.20 billion in fiscal 2024. The company expects adjusted earnings in the band of $6.80-$7.00 per share.
Management expects to generate free cash flow between 460 million and $480 million in fiscal 2024. It projects the adjusted EBITDA margin between 9.2% and 9.4% in fiscal 2024.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have decreased 0.3% year to date (YTD).
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has remained unchanged at 8 cents per share in the past 60 days. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past seven days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 28% YTD.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has been revised downward by 3 cents to $1.24 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 60 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 12.6% YTD.
The Zacks Consensus Estimate for Fortinet's first-quarter 2023 earnings has remained unchanged at 39 cents per share over the past 60 days. For 2023, earnings estimates have moved upward by a penny to $1.41 per share in the past seven days.
Fortinet's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 15.8%. Shares of FTNT have slumped 35.7% YTD.
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Science Applications (SAIC) Q4 Earnings & Sales Beat Estimates
Science Applications International Corporation (SAIC - Free Report) delivered better-than-expected fourth-quarter fiscal 2023 results. The company reported adjusted earnings of $2.04 per share, surpassing the Zacks Consensus Estimate of $1.63. The bottom line increased 36% from the year-ago quarter’s earnings of $1.50 per share, mainly driven by higher revenues, a lower tax rate and an approximately 4% reduction in shares outstanding.
Revenues soared 10% year over year to $1.97 billion and outpaced the consensus mark of $1.86 billion. The increase was primarily due to the benefits of additional five working days during the quarter and the ramp-up of new and existing contracts, partially offset by contract completions.
Quarter in Detail
Net bookings for the fiscal fourth quarter were $1.3 billion, reflecting a book-to-bill ratio of 0.7. Net bookings for the full-fiscal 2023 were $7.4 billion, reflecting a book-to-bill ratio of 1. SAIC’s estimated backlog of signed business deals was $23.8 billion at the end of fiscal 2023, of which $3.6 billion was funded.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
The non-GAAP operating income increased 23.6% year over year to $131 million. The non-GAAP operating margin expanded 80 basis points to 6.7%.
Adjusted EBITDA increased to $171 million from $146 million in the year-ago quarter. The adjusted EBITDA margin expanded to 8.7% from 8.2% in the year-ago quarter.
Balance Sheet & Cash Flow Details
Science Applications ended the fiscal fourth quarter with cash and cash equivalents of $109 million, up from the prior quarter’s $53 million. As of Feb 3, 2023, its long-term debt (net of the current portion) was $2.34 billion.
The company generated operating and free cash flows of $145 million and $148 million, respectively, in the fourth quarter. In the full-fiscal 2023, the company generated operating and free cash flows of $532 million and $457 million, respectively.
In the fiscal fourth quarter, Science Applications paid out $20 million in dividends and repurchased shares worth $56 million. During the full-fiscal 2023, the company paid out dividends of $83 million and bought back shares worth $245 million.
Science Applications announced that its board of directors authorized a quarterly cash dividend of 37 cents per share, payable on Apr 28, 2023, to shareholders of record as of Apr 14, 2023.
Fiscal 2024 Guidance
The company anticipates revenues in the band of $7.05-$7.20 billion in fiscal 2024. The company expects adjusted earnings in the band of $6.80-$7.00 per share.
Management expects to generate free cash flow between 460 million and $480 million in fiscal 2024. It projects the adjusted EBITDA margin between 9.2% and 9.4% in fiscal 2024.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have decreased 0.3% year to date (YTD).
Some better-ranked stocks in the broader technology sector are Wix.com (WIX - Free Report) , Aspen Technology (AZPN - Free Report) and Fortinet (FTNT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has remained unchanged at 8 cents per share in the past 60 days. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past seven days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 28% YTD.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has been revised downward by 3 cents to $1.24 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 60 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 12.6% YTD.
The Zacks Consensus Estimate for Fortinet's first-quarter 2023 earnings has remained unchanged at 39 cents per share over the past 60 days. For 2023, earnings estimates have moved upward by a penny to $1.41 per share in the past seven days.
Fortinet's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 15.8%. Shares of FTNT have slumped 35.7% YTD.