SAIC (SAIC) Reports Earnings Tomorrow: What To Expect

Government IT services provider Science Applications International Corporation (NASDAQ:SAIC) will be announcing earnings results tomorrow morning. Here’s what you need to know.

SAIC beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.84 billion, up 5.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

Is SAIC a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting SAIC’s revenue to grow 1% year on year to $1.87 billion, a reversal from the 8.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.12 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SAIC has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.

Looking at SAIC’s peers in the government & technical consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Maximus posted flat year-on-year revenue, beating analysts’ expectations by 5.2%, and ICF International reported a revenue decline of 1.4%, in line with consensus estimates. Maximus traded up 12.1% following the results while ICF International was down 6.3%.

Read our full analysis of Maximus’s results here and ICF International’s results here.

There has been positive sentiment among investors in the government & technical consulting segment, with share prices up 4.3% on average over the last month. SAIC is down 1.6% during the same time and is heading into earnings with an average analyst price target of $127.19 (compared to the current share price of $115.71).

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