SAIC Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SAIC, Inc. (NYSE:SAI) will unveil its latest earnings on Tuesday, December 6, 2011. 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 profit of 34 cents per share, a decline of 17.1% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $1.36 per share, a decline of 9.9% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 3 cents, coming in at profit of 32 cents per share versus a mean estimate of net income of 35 cents per share. In the first quarter, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.75 billion in revenue this quarter, a decline of 4.2% from the year ago quarter. Analysts are forecasting total revenue of $10.73 billion for the year, a decline of 3.5% 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.

A Look Back: In the second quarter, profit fell 5.8% to $178 million (50 cents a share) from $189 million (50 cents a share) the year earlier, missing analyst expectations. Revenue fell 7.1% to $2.6 billion from $2.79 billion.

Key Stats:

A year-over-year revenue decrease in the second quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 0.1%in the first quarter, 3.2% in the fourth quarter of the last fiscal year and 3.8% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 4.8% in the first quarter, 7.3% in the fourth quarter of the last fiscal year and 27.4% 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).

Stock Price Performance: During September 6, 2011 to November 30, 2011, the stock price had fallen 92 cents (-7.1%) from $12.97 to $12.05. 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 $3.81 (-24%) year to date.

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

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