SAIC Second Quarter Earnings Sneak PREVIEW

S&P 500 (NYSE:SPY) component SAIC (NYSE:SAI) will unveil its latest earnings on Thursday, August 30, 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 33 cents per share, a rise of 3.1% from the company’s actual earnings for the year-ago quarter. 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. Analysts are projecting profit to rise by 0.7% compared to last year’s $1.35.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 35 cents per share against a mean estimate of net income of 33 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 3 cents.

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A Look Back: In the first quarter, profit fell 10.7% to $117 million (35 cents a share) from $131 million (36 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.5% to $2.78 billion from $2.69 billion.

Stock Price Performance: Between May 31, 2012 and August 24, 2012, the stock price rose 65 cents (5.9%), from $11.11 to $11.76. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 5.6% (+64 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 6.2% (-81 cents) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.51 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 7.1% in the second quarter of the last fiscal year, 2% in the third quarter of the last fiscal year and 10% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the third quarter of the last fiscal year and the fourth quarter of the last fiscal year, but finished in the black with income of $117 million in the first.

Analyst Ratings: There are mostly holds on the stock with eight of 13 analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts predict a rise of 1.9% in revenue from the year-earlier quarter to $2.65 billion.

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

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