SAIC 4Q Exceeds J.P. Morgan Expectations

SAIC, Inc. (NYSE: SAI) Q4 EPS of $0.36 exceeded J.P. Morgan's estimate of $0.30 driven by better than expected sales (+1%) and operating margin (+95 bps), and lower than expected tax rate and share count.

“Management reiterated FY12 EPS guidance of $1.35-1.46, but lowered revenue guidance by $200 million to $11.0-11.5 billion to reflect plans to sell part of a commercial IT business that provides services to oil and gas companies,” J.P. Morgan writes.

“The fundamental outlook for government service contractors remains challenging, particularly in the face of budget uncertainty and a continuing resolution.”

SAIC, Inc. closed Thursday at $17.04.