Market Overview

A Preview Of Science Applications Intl's Earnings


Science Applications Intl (NYSE:SAIC) announces its next round of earnings this Thursday, December 03. Here is Benzinga's look at Science Applications Intl's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Science Applications Intl earnings of $1.53 per share. Revenue will likely be around $1.83 billion, according to the consensus estimate. In the same quarter last year, Science Applications Intl reported earnings per share of $1.39 on sales of $1.63 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 10.07% increase in the company's EPS figure. Sales would be up 12.27% on a year-over-year basis. Science Applications Intl's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.44 1.40 1.34 1.44
EPS Actual 1.63 1.38 1.58 1.39
Revenue Estimate 1.80 B 1.72 B 1.57 B 1.63 B
Revenue Actual 1.76 B 1.76 B 1.54 B 1.63 B

Stock Performance

For a full 12 months, the return has risen by 11.75%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Science Applications Intl is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings