SAIC, Inc. (NYSE:SAI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
SAIC, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 34.29% to $0.23 in the quarter versus EPS of $0.35 in the year-earlier quarter.
Revenue: Decreased 2.7% to $2.71 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: SAIC, Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.26. It beat the average revenue estimate of $2.59 billion.
Quoting Management: “Our performance for the quarter was consistent with our expectations and reflects the difficult government market characterized by spending reductions and procurement delays associated with sequestration. We are reaffirming our guidance for the full year. The market conditions reinforce the importance of expanding our addressable markets through the planned separation of the Company,” said John P. Jumper, SAIC Chairman and Chief Executive Officer. “In addition, we continue to invest in operational improvements and to drive cost reductions necessary to position the Company for profitable growth in the future.”
Key Stats (on next page)…
Revenue decreased 0.15% from $2.71 billion in the previous quarter. EPS decreased 57.41% from $0.54 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.28 to a profit of $1.17 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)