Financial Performance - Science Applications International Corporation (SAIC) is set to release its fourth-quarter financial results on March 17, with analysts expecting earnings of $2.09 per share, an increase from $1.43 per share in the same period last year [1] - The projected quarterly revenue for SAIC is $1.81 billion, compared to $1.74 billion a year earlier [1] Dividend Information - SAIC currently offers an annual dividend yield of 1.42%, translating to a quarterly dividend of 37 cents per share, or $1.48 annually [2] - To generate $500 monthly or $6,000 annually from dividends, an investment of approximately $422,670 or around 4,054 shares is required. For a more modest income of $100 monthly or $1,200 annually, an investment of $84,555 or around 811 shares is needed [2] Dividend Yield Dynamics - The dividend yield can fluctuate based on changes in the stock price and dividend payments. It is calculated by dividing the annual dividend payment by the stock's current price [3][4] - For instance, if a stock's price increases while the dividend remains the same, the yield decreases, and vice versa [4][5] Stock Performance - Recently, shares of SAIC fell by 0.4%, closing at $104.26 [5]

Core Insights - SAIC and Defense Unicorns have formed a strategic partnership to enhance the delivery of secure and scalable software capabilities for the Department of Defense (DoD) [1][5] - The integration of Defense Unicorns' Unicorn Delivery Service (UDS) into SAIC's software delivery ecosystem aims to streamline application deployment across various environments, improving operational readiness for military personnel [1][3] Software Delivery Challenges - The DoD faces challenges with traditional software delivery methods, which often lead to fragmented and slow processes, impacting the deployment of critical capabilities [2] - There is a need for industry partners to provide solutions that address issues such as bespoke infrastructure and inconsistent security standards [2] Benefits of UDS Integration - Adopting UDS as the standard software delivery platform will allow for more efficient deployment of mission-ready applications, reducing delivery timelines from months to weeks or days [3] - UDS automates deployment, accelerates compliance, and removes integration barriers, ensuring timely delivery of software updates and new capabilities [4] Strategic Commitment - SAIC is dedicated to providing an innovative ecosystem of next-generation offerings that meet unique mission needs and accelerate outcomes for the DoD [4] - The partnership is expected to fundamentally change how the DoD fields mission-critical software, enhancing the speed and security of software delivery [5][6] Company Profiles - SAIC has over 50 years of experience in technology integration for government customers, with annual revenues of approximately $7.4 billion [8] - Defense Unicorns, founded in 2021, focuses on transforming how the DoD acquires and sustains software capabilities, trusted by critical military branches [9][10]

Group 1: Market Trends and Defense Spending - European Commission President Ursula von der Leyen announced an 800 billion euro ($841 billion) "REARM Europe" program to enhance military capabilities and support Ukraine, which may lead to increased purchases from U.S. defense contractors [3] - Citigroup suggested that recent declines in defense stock prices combined with potential European spending indicate it is time to buy defense stocks, highlighting a projected increase of $300 billion in the U.S. defense budget over the next 10 years [4] - Wells Fargo noted that defense stocks are becoming "interesting" and raised its price target on Lockheed Martin, reflecting a growing positive sentiment on Wall Street [5] Group 2: Company Valuations - Lockheed Martin's current price-to-earnings (P/E) ratio is 21.2, which is lower than the S&P 500 average of 28.8, but its price-to-sales (P/S) ratio of 1.6 and enterprise value-to-sales ratio of 1.8 indicate it is 43% more expensive than its 20-year average [7] - Science Applications International Corporation (SAIC) has a more attractive valuation with a P/E ratio of 17.9 and a P/S ratio of 0.8, along with significantly higher free cash flow compared to net income [8] - GE Aerospace's valuation is complex due to its hybrid business model, with a P/S ratio of 5.5 and a P/E ratio of nearly 32, which appear expensive given its cash flow generation [9][10]

Core Viewpoint - Science Applications International Corp. (SAIC) is set to release its fourth quarter fiscal year 2025 results on March 17, 2025, with a conference call scheduled for 10:00 a.m. Eastern time to discuss operational and financial results [1] Group 1: Company Overview - SAIC is a Fortune 500® technology integrator focused on technology and innovation to serve and protect the world [3] - The company has a diverse portfolio across defense, space, civilian, and intelligence markets, providing secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services [3] - SAIC employs approximately 24,000 people and is headquartered in Reston, Virginia, with annual revenues of about $7.4 billion [4] Group 2: Conference Call Details - The conference call will be available via webcast only, with no dial-in access provided [2] - A supplemental presentation will be accessible through links on the SAIC website, and an on-demand audio replay of the webcast will be available after the call [2]

Group 1 - The U.S. Department of Defense is conducting a comprehensive review of consulting services contracts, aiming to make cuts and terminate nonessential contracts [1][4] - Companies such as Booz Allen Hamilton, Science Applications International, Leidos Holdings, and General Dynamics experienced stock declines due to investor concerns about the implications of the review [2][3] - The review results are expected to be released between March and mid-April, with the potential for significant contract terminations [4][5] Group 2 - The Department of Government Efficiency has already terminated a $1.9 billion contract with the Internal Revenue Service, indicating a trend towards cuts in consulting services [5] - There is uncertainty regarding the shift from a "cost-plus" contract model to a fixed-fee model, which could impact company margins [6] - Investment bank William Blair downgraded several companies, including Booz Allen and General Dynamics, reflecting the negative sentiment in the market [6] Group 3 - Despite the potential for cuts, there is a belief that the government may not fully revert to in-house operations for previously outsourced activities, as this would lead to significant disruptions and costs [8] - The industry had hoped that government streamlining efforts would create new opportunities, but the outlook now suggests a mix of both opportunities and cuts [7] - The current environment is expected to lead to volatility in the stocks of these government IT service providers until more clarity is achieved [8]

Summary of Key Points Core Viewpoint - Shares of Science Applications International Corporation (SAIC) have experienced a significant decline of 35%, dropping from a high of $154.10 on November 11, 2024, to $100.13 on February 18, 2025, primarily due to market sell-off pressures [1] Company Performance - The stock price of SAIC has decreased substantially over the past three months, indicating potential volatility and investor concerns [1] Investor Insights - Robert F. Abbott, an experienced investor since 1995, has been utilizing options strategies such as covered calls and collars alongside long stock positions, reflecting a cautious approach to market fluctuations [1] Market Context - The decline in SAIC's stock price may suggest broader market trends affecting technology and defense sectors, which are critical to the company's operations [1]

Core Insights - Science Applications International Corp. (SAIC) shares have declined 18% over the past three months, underperforming the Zacks Computers - IT Services industry, Zacks Computer and Technology sector, and the S&P index, which grew by 7.4%, 9.8%, and 6.6% respectively [1][2] Financial Performance - SAIC's fiscal 2025 revenue outlook is projected to be between $7.425 billion and $7.475 billion, raising investor concerns due to a slight expected decline of 0.13% year over year based on Zacks consensus estimates [2][11] - The company is currently facing revenue gaps due to contract transitions and improved bid selections [2] Recent Developments - SAIC secured a $170.9 million contract from the Texas Department of Information Resources to provide cybersecurity services, indicating a growing presence in state and local government sectors [3] - The company has been focusing on increasing its market presence in the federal government sector, with approximately 98% of its revenues coming from U.S. government contracts in recent years [6] Market Position - Major clients include various U.S. government agencies such as Homeland Security, NASA, and military branches, which helps stabilize revenue and minimize fluctuations [6][7] - The increased federal government budget is expected to accelerate contract awards, benefiting SAIC's top-line growth [7] Competitive Landscape - SAIC operates in a competitive market with players like CACI International, KBR Inc., and Leidos Holdings, which creates pricing pressure and low-margin government deals affecting profitability [8][9] - Rising component costs, labor, and logistics expenses, along with recession concerns, may lead to softened spending by government agencies, impacting near-term prospects [10]

Core Insights - Science Applications International Corp. (SAIC) has been awarded a contract valued at $170.9 million by the State of Texas' Department of Information Resources to provide cybersecurity services [1][3]. Group 1: Contract Details - The contract aims to enhance cybersecurity for state agency networks, focusing on security operations services, risk management, and compliance with regulations [3][4]. - This contract signifies an expansion of SAIC's cybersecurity efforts in Texas, building on its existing partnerships with various state and local governments [2][3]. Group 2: Company Overview - SAIC is a Fortune 500 technology integrator with a focus on defense, space, civilian, and intelligence markets, generating annual revenues of approximately $7.4 billion [5][6]. - The company employs around 24,000 individuals and emphasizes a culture of diversity, equity, and inclusion [6].

Science Applications International Corp. (SAIC) shares have lost 7.8% in the year-to-date period, underperforming the Zacks Computers - IT Services industry, Zacks Computer and Technology sector and the S&P index’s growth of 16.7%, 34.2% and 27.8%, respectively.SAIC stock’s dip in performance can be traced back to the temporary challenges that the company was facing due to contract transitions and improved bid selections creating revenue gaps. SAIC’s cautious outlook of fiscal 2025 revenues of $7.425-$7.475 ...

RESTON, Va., Dec. 16, 2024 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ:SAIC) has been awarded a prime position on the $1.8 billion Personnel and Readiness Infrastructure Support Management (PRISM) Multiple Award Task Order Contract ("MATOC") vehicle to support the Department of Defense (DoD) and its need to obtain critical services in a shorter time frame. The contract award is for one base year and four option years. The PRISM contract provides the Office of the Undersecretary of D ...