For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? D ...

Core Insights - The article emphasizes the importance of earnings estimates and revisions in identifying strong stocks, while also acknowledging that investors have their own strategies [1] - Value investing is highlighted as a popular method for finding great stocks across various market conditions [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly focusing on the "Value" category for value investors [3] Company Analysis: Science Applications International (SAIC) - SAIC currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong performance potential [4] - The stock is trading at a P/E ratio of 16.32, significantly lower than the industry average P/E of 38.70 [4] - Over the past year, SAIC's Forward P/E has fluctuated between a high of 17.94 and a low of 13.35, with a median of 15.40 [4] - The P/S ratio for SAIC is 0.97, compared to the industry's average P/S of 2.08, suggesting that SAIC may be undervalued [5] - These metrics indicate that SAIC is likely undervalued and has a strong earnings outlook, making it an attractive value stock at present [6]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? The ...

RESTON, Va., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has been awarded a new $229 million contract by the U.S. Department of Defense to provide vital IT solutions under the NORAD/USNORTHCOM Information Technology Enterprise Services (NITES) program. "NORAD and USNORTHCOM defend America and its people," said Vinnie DiFronzo, executive vice president for Air Force and Combatant Commands at SAIC. "SAIC is committed to delivering a highlyresilient, highly-availa ...

Core Viewpoint - Science Applications International Corporation (SAIC) reported better-than-expected results for the second quarter of fiscal 2025, with adjusted earnings of $2.05 per share, surpassing the Zacks Consensus Estimate of $1.86 [1][2]. Financial Performance - Revenues increased by 1.9% year over year to $1.82 billion, exceeding the consensus mark of $1.8 billion, driven by organic growth and new business wins, despite challenges from contract transitions [3]. - Adjusted EBITDA was $170 million, down 2% year over year, with the adjusted EBITDA margin contracting by 40 basis points to 9.4% [3][6]. - Net bookings for the fiscal second quarter were $1.2 billion, resulting in a book-to-bill ratio of 0.6, with an estimated backlog of signed business deals at $22.9 billion [5]. - Selling, general and administrative (SG&A) expenses decreased by 12.5% to $77 million, with SG&A as a percentage of revenues declining from 4.9% to 4.2% [5]. Business Structure and Guidance - Effective February 3, 2024, SAIC reorganized its business structure into five new customer-facing business groups, which are combined into two reportable segments: Defense and Intelligence, and Civilian [4]. - The company reaffirmed its fiscal 2025 guidance, projecting revenues in the range of $7.35-$7.50 billion and adjusted earnings between $8.10-$8.30 per share [8]. - SAIC expects adjusted EBITDA in the range of $680-$700 million and free cash flow between $490-$510 million [9]. Balance Sheet and Cash Flow - As of the end of the fiscal second quarter, SAIC had cash and cash equivalents of $48 million, down from $49 million in the previous quarter [7]. - Long-term debt was reported at $1.97 billion, a slight decrease from $1.99 billion [7]. - The company generated operating cash flow of $138 million and free cash flow of $241 million during the fiscal second quarter [7].

Financial Performance - Revenues for the three months ended August 2, 2024, were $1,818 million, a 1.9% increase from $1,784 million for the same period in 2023[3] - Net income for the three months ended August 2, 2024, was $81 million, a decrease of 67.2% compared to $247 million for the same period in 2023[3] - Basic earnings per share for the three months ended August 2, 2024, were $1.59, down 65.4% from $4.60 for the same period in 2023[3] - Operating income for the three months ended August 2, 2024, was $134 million, a significant decrease from $362 million for the same period in 2023[3] - The company reported a comprehensive income of $73 million for the three months ended August 2, 2024, compared to $254 million for the same period in 2023[4] - Net income for the six months ended August 2, 2024, was $158 million, compared to $345 million for the same period in 2023, reflecting a decrease of 54%[9] - For the six months ended August 2, 2024, revenues were $3,665 million, a decrease from $3,812 million for the same period in 2023[32] - Total operating income for the six months ended August 2, 2024, was $265 million, down from $519 million for the same period in 2023[69] Assets and Liabilities - Total assets as of August 2, 2024, were $5,250 million, a decrease from $5,314 million as of February 2, 2024[6] - Current liabilities increased to $1,292 million as of August 2, 2024, compared to $1,158 million as of February 2, 2024[6] - Total stockholders' equity decreased to $1,625 million as of August 2, 2024, from $1,785 million as of February 2, 2024[6] - As of August 2, 2024, the total debt of the Company was $2.177 billion, with a net debt of $1.980 billion after accounting for the current portion[51] Cash Flow and Investments - Cash provided by operating activities was $236 million for the six months ended August 2, 2024, slightly up from $232 million in the same period of 2023[9] - Total cash, cash equivalents, and restricted cash at the end of the period was $56 million, down from $361 million at the end of the same period in 2023[9] - The company reported a net cash used in investing activities of $16 million for the six months ended August 2, 2024, compared to a net cash provided of $334 million in the same period of 2023[9] - Cash proceeds from the divestiture of the Supply Chain Business amounted to $356 million, enhancing the company's focus on long-term strategic growth areas[42] Stock and Dividends - The company repurchased $304 million worth of stock during the six months ended August 2, 2024, compared to $190 million in the same period of 2023, indicating a significant increase in stock buybacks[9] - The company declared cash dividends of $39 million during the six months ended August 2, 2024, compared to $41 million in the same period in 2023[9] - The company declared a quarterly dividend of $0.37 per share during the three months ended August 2, 2024[28] Business Operations and Strategy - The company completed a business reorganization effective February 3, 2024, transitioning from two customer-facing operating sectors to five business groups[11] - The Defense and Intelligence segment provides a diverse portfolio of national security solutions to U.S. government agencies, while the Civilian segment focuses on solutions for federal, state, and local governments[12] - The Innovation Factory supports the operating segments by developing enterprise-class solutions, including a focus on AI, application development, and cybersecurity[13] - The company anticipates that future spending packages from the U.S. government may provide additional opportunities in areas of focus such as digital modernization and climate resiliency[87] - The company is focused on leveraging its scale and technical expertise to differentiate itself from competitors, particularly in large contract opportunities[88] Performance Obligations and Backlog - The company reported approximately $5.4 billion in remaining performance obligations (RPO) as of August 2, 2024, with an expectation to recognize 79% of this amount over the next 12 months[38] - Total backlog as of August 2, 2024, was $22.899 billion, consisting of $4.237 billion in funded backlog and $18.662 billion in negotiated unfunded backlog[114] - The company expects to recognize revenue from a substantial portion of its funded backlog within the next twelve months[114] Tax and Accounting - The effective income tax rate for the three months ended August 2, 2024, was 19.6%, a decrease from 26.4% for the same period in 2023[49] - The company plans to adopt new accounting standards related to income taxes and segment reporting in fiscal years 2025 and 2026, respectively[23][24] Market and Segment Performance - The Defense and Intelligence segment generated revenues of $1,415 million for the three months ended August 2, 2024, compared to $1,389 million for the same period in 2023, reflecting a growth of 1.9%[69] - The Civilian segment reported revenues of $403 million for the three months ended August 2, 2024, up from $395 million in the same period of 2023, marking a 2.0% increase[69] - Revenues for the three months ended August 2, 2024, increased by $34 million (2%) compared to the same period in the prior year, primarily due to ramp-up in volume on existing and new contracts[94] Investigations and Compliance - The company is involved in ongoing investigations by the U.S. Department of Justice, which may impact future financial results, although no material adverse effects are currently anticipated[71] - The Company is in compliance with the covenants under its Credit Facility as of August 2, 2024[56]

Financial Data and Key Metrics Changes - The company reported second quarter organic revenue growth of 2% year-over-year, with adjusted EBITDA of $170 million and a margin of 9.4% [7][8] - Adjusted diluted earnings per share increased to $2.05, benefiting from a lower effective tax rate of approximately 19.5% and a 5% year-over-year reduction in the weighted average share count [7][8] - Free cash flow for the second quarter was $241 million, contributing to a total of $262 million for the first half, representing over 50% of the full year guidance [8][16] Business Line Data and Key Metrics Changes - The company is focusing on increasing submissions in the Civilian market and within Enterprise and Mission IT, which are expected to drive outsized growth [10][11] - Net bookings for the quarter were $1.2 billion, resulting in a book-to-bill ratio of 0.6x for the quarter and 1.1x on a trailing 12-month basis [13] Market Data and Key Metrics Changes - The company is experiencing a headwind of approximately 5% from recompete pressures, which is expected to ease going into fiscal year 2026 [15][39] - The company anticipates that the political environment will not significantly impact its Civilian and Defense portfolios due to bipartisan support for key agencies [20][21] Company Strategy and Development Direction - The company has implemented an enterprise operating model designed to optimize investment planning and align its pipeline with growth vectors, focusing on four pivots: portfolio, go-to-market, culture, and brand [9] - The strategy aims to increase the total value of submissions, improve the quality of bids, and drive bookings and backlog growth, with expectations for a book-to-bill ratio of 1.2x by the first half of fiscal year 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the guidance for fiscal year 2025 and sustaining momentum into fiscal year 2026, despite some revenue challenges in the second half of the year [8][15] - The company is optimistic about its ability to gain market share in the Civilian space, as it is currently underrepresented [21] Other Important Information - The company returned approximately $220 million to shareholders in the quarter, including $201 million in share repurchases, and is on track to exceed its repurchase target for the year [14][16] - The company is maintaining a high threshold for M&A while focusing on its share repurchase program [16] Q&A Session Summary Question: What gives confidence to reach a book-to-bill of 1.2? - Management indicated that the submission rate and a larger qualification pipeline, with about $10 billion of submitted bids pending award, support this confidence [18][19] Question: How does the company view the Civilian versus Defense budget shifts? - Management believes the Civilian portfolio is insulated from major swings due to bipartisan support, while defense spending is expected to remain stable [20][21] Question: What is the risk around execution for the bids being chased? - The company is focusing on bidding more strategically and margin-accretively, with an emphasis on fixed-price contracts and tightening execution expectations [24][25] Question: What is the status of the recompete for the largest contract? - Management expects no award activity until the next fiscal year, with potential revenue impact in fiscal year 2026 or early fiscal year 2027 [51][53]

U.S. stocks traded mixed toward the end of trading, with the Nasdaq Composite gaining around 0.5% on Thursday. The Dow traded down 0.36% to 40,828.19 while the NASDAQ rose 0.53% to 17,174.66. The S&P 500 also fell, dropping, 0.08% to 5,515.76. Check This Out: How To Earn $500 A Month From Smith & Wesson Brands Stock Ahead Of Q1 Earnings Report Leading and Lagging Sectors Consumer discretionary shares climbed by 1.4% on Thursday. In trading on Thursday, health care shares fell by 1.2%. Top Headline Science A ...

Key Takeaways Science Applications International Corporation, or SAIC, exceeded profit and sales forecasts on increased contract volume. The government and defense technology provider also raised its full-year EPS guidance. Free cash flow rose 67% year-over-year. Shares of Science Applications International Corporation (SAIC), or SAIC, advanced Thursday when the government and defense technology provider posted better-than-expected results and boosted its guidance as the volume of contracts increased. SAIC ...

SAIC (SAIC) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 10.22%. A quarter ago, it was expected that this information technology company would post earnings of $1.93 per share when it actually produced earnings of $1.92, delivering a surprise of -0.52%. Over the last four quarters, ...