SAIC Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SAIC (NYSE:SAI) will unveil its latest earnings on Wednesday, December 5, 2012. SAIC provides scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military and other government entities.

SAIC Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 35 cents per share, no change from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 34 cents during the last month. Analysts are projecting profit to rise by 0.7% compared to last year’s $1.35.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 32 cents per share against a mean estimate of 33 cents. Two quarters ago, it beat expectations by 2 cents with profit of 35 cents.

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A Look Back: In the second quarter, profit fell 38.2% to $110 million (32 cents a share) from $178 million (50 cents a share) the year earlier, missing analyst expectations. Revenue rose 9.7% to $2.85 billion from $2.6 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.78 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Stock Price Performance: From October 31, 2012 to November 29, 2012, the stock price rose 68 cents (6.2%), from $10.99 to $11.67. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 5.6% (+64 cents) over that span. It saw one of its worst periods between February 17, 2012 and March 1, 2012 when shares fell for nine straight days, dropping 6.2% (-81 cents) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 3.5% in the first quarter before climbing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 11 analysts surveyed giving that rating.

Wall St. Revenue Expectations: On average, analysts predict $2.84 billion in revenue this quarter, a rise of 1.1% from the year-ago quarter. Analysts are forecasting total revenue of $11.18 billion for the year, a rise of 5.6% from last year’s revenue of $10.59 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)