Earnings Preview: SAIC (SAIC) Q3 Earnings Expected to Decline

Core Viewpoint - SAIC is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending October 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $2.17 per share, reflecting a year-over-year decrease of 4.4% [3]. - Revenues are projected to reach $1.93 billion, which is an increase of 1.9% compared to the same quarter last year [4]. Estimate Revisions - The consensus EPS estimate has been revised 1.47% higher in the last 30 days, indicating a collective reassessment by analysts [5]. - The Most Accurate Estimate for SAIC is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.46%, suggesting a bearish outlook from analysts [11][12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from consensus estimates, with a positive reading being a strong predictor of an earnings beat [8][9]. - However, the current negative Earnings ESP reading for SAIC complicates the prediction of an earnings beat [13]. Historical Performance - In the last reported quarter, SAIC exceeded the expected earnings of $1.86 per share by delivering $2.05, resulting in a surprise of +10.22% [14]. - Over the past four quarters, SAIC has beaten consensus EPS estimates twice [15]. Conclusion - While SAIC does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [18].