SAIC First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SAIC, Inc. (NYSE:SAI) will unveil its latest earnings on Thursday, May 31, 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 33 cents per share, a decline of 8.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 34 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 33 cents during the last month. Analysts are projecting profit to rise by 0.7% versus last year to $1.35.

Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at profit of 31 cents per share against a mean estimate of net income of 34 cents. The company topped expectations in the third quarter of the last fiscal year.

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Wall St. Revenue Expectations: Analysts are projecting no change in revenue from the year-earlier quarter to $2.69 billion.

Analyst Ratings: Analysts seem relatively indifferent about SAIC with 10 of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $161 million (45 cents a share) from a profit of $132 million (35 cents) a year earlier, missing analyst expectations. Revenue fell 10% to $2.49 billion from $2.77 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 7.1% in the second quarter of the last fiscal year and 2% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.

Competitors to Watch: OSI Systems, Inc., General Dynamics Corp., L-3 Communications Hldgs., Inc., Intl. Business Machines Corp., American Science & Engineering, Inc., Northrop Grumman Corp., Kratos Defense & Security Solutions, Inc, Lockheed Martin Corp., Computer Sciences Corp., and Booz Allen Hamilton Holding Corp.

Stock Price Performance: Between March 29, 2012 and May 25, 2012, the stock price had fallen $2.46 (-18.8%), from $13.08 to $10.62. The stock price saw one of its best stretches over the last year between June 15, 2011 and June 22, 2011, when shares rose for six straight days, increasing 3.1% (+50 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 6.3% (-81 cents) over that span.

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

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