SAIC, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SAIC, Inc. (NYSE:SAI) will unveil its latest earnings on Wednesday, August 31, 2011. SAIC, Inc. 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 35 cents per share, a decline of 16.7% 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 36 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 35 cents during the last month. For the year, analysts are projecting profit of $1.45 per share, a decline of 4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 36 cents per share against a mean estimate of profit of 33 cents per share.

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

Wall St. Revenue Expectations: On average, analysts predict $2.77 billion in revenue this quarter, a decline of 0.7% from the year ago quarter. Analysts are forecasting total revenue of $11.2 billion for the year, a rise of 0.7% from last year’s revenue of $11.12 billion.

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

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 4.8% while it rose 7.3% in the fourth quarter of the last fiscal year and 27.4% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 0.1% to $2.69 billion in first quarter. The figure rose 3.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 3.8% in the third quarter of the last fiscal year from the year-ago quarter and 1.6% in the second 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).

Stock Price Performance: During June 1, 2011 to August 25, 2011, the stock price had fallen $2.94 (-17%) from $17.27 to $14.33. The stock price saw one of its best stretches over the last year between March 16, 2011 and March 24, 2011 when shares rose for seven-straight days, rising 4.5% (+74 cents) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 8.6% (-$1.44) over that span. Shares are down $1.53 (-9.6%) year to date.

(Source: Xignite Financials)

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