SAIC, Inc. Earnings Cheat Sheet: Profit Falls

S&P 500 (NYSE:SPY) component SAIC, Inc. (NYSE:SAI) reported its results for the second quarter. SAIC, Inc. 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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for the technical services company fell to $178 million (50 cents per share) vs. $189 million (50 cents per share) a year earlier. This is a decline of 5.8% from the year earlier quarter.

Revenue: Fell 7.1% to $2.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SAI beat the mean analyst estimate of 35 cents per share. It fell short of the average revenue estimate of $2.77 billion.

Quoting Management: “Our overall results for the quarter were disappointing,” said Walt Havenstein, SAIC chief executive officer. “In this challenging government contracting environment, the lack of funding for ongoing programs and for ramping up new work drove a shortfall in revenues and earnings per share. However, we continue to believe there will be areas of growth as evidenced by the encouraging performance in our health, energy and intelligence, surveillance and reconnaissance businesses.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 4.8% from the year earlier, while the figure increased 7.3% in the fourth quarter of the last fiscal year, 27.4% in the third quarter of the last fiscal year and 53.7% in the second quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 3.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 7 cents in the fourth quarter of the last fiscal year, and by 6 cents in the third quarter of the last fiscal year.

Competitors to Watch: OSI Systems, Inc. (NASDAQ:OSIS), General Dynamics Corp. (NYSE:GD), L-3 Communications Hldgs., Inc. (NYSE:LLL), Intl. Business Machines Corp. (NYSE:IBM), American Science & Engineering, Inc. (NASDAQ:ASEI), Northrop Grumman Corp. (NYSE:NOC), Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS), Lockheed Martin Corp. (NYSE:LMT), Computer Sciences Corp. (NYSE:CSC), and Booz Allen Hamilton Holding Corp. (NYSE:BAH).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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