S&P 500 (NYSE:SPY) component SAIC Inc. (NYSE:SAI) reported its results for the first quarter. SAIC provides scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military and other government entities.
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SAIC Inc. Earnings Cheat Sheet
Results: Net income for SAIC Inc. fell to $117 million (35 cents per share) vs. $131 million (36 cents per share) a year earlier. This is a decline of 10.7% from the year-earlier quarter.
Revenue: Rose 3.5% to $2.78 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: SAIC Inc. beat the mean analyst estimate of 33 cents per share. It beat the average revenue estimate of $2.69 billion.
Quoting Management: “Our performance for the quarter reflects a combination of pressures we are seeing in the market and internal investments being made to prepare for the future,” said John P. Jumper, SAIC president and chief executive officer. “Despite these two factors, I am pleased we delivered positive revenue growth for the quarter, growth that can be attributed to a strategy that leverages our diverse portfolio of government and commercial offerings and the dedicated work of our employees who deliver the highest level of performance to our customers every day.”
Last quarter’s year-over-year revenue increase ends a three-quarter streak of revenue declines. Revenue fell 10% in the fourth quarter of the last fiscal year, 2% in the third quarter of the last fiscal year and 7.1% in the second quarter of the last fiscal year.
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 31 cents versus a mean estimate of net income of 34 cents per share.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is 33 cents per share, a drop from 34 cents. At $1.35 per share, the average estimate for the fiscal year has fallen from $1.38 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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