SAIC Clocks Flat Revenue Growth In Q2; Margins Contrac

  • Science Applications International Corp (NYSE: SAIC) reported a flat revenue growth year-on-year in the second quarter of FY23 to $1.831 billion, marginally beating the consensus of $1.830 billion.
  • Adjusted EPS of $1.75 beat the consensus of $1.69.
  • Adjusted operating margin contracted by 120 bps to 6.8% due to higher indirect costs.
  • Adjusted EBITDA margin contracted 100 bps to 9.1%.
  • SAIC generated $141 million in operating cash flow and held $108 million in cash and equivalents.
  • Net bookings for the quarter were $2.1 billion, reflecting a book-to-bill ratio of 1.1. 
  • Dividend: The company's cash dividend of $0.37 per share will be payable on October 28, 2022, to stockholders of record on October 14, 2022.
  • CEO Nazzic Keene said, "The investments we have made to build differentiated solutions in the areas of Secure Cloud and Systems Integration position us well to gain share in a growing market."
  • FY23 Outlook: SAIC hiked its lower end of revenue and EPS outlook. It sees revenue of $7.50 billion - $7.55 billion (prior view $7.43 billion-$7.55 billion) versus the consensus of $7.51 billion.
  • SAIC sees adjusted EPS guidance of $7.00 - $7.20 (prior view $6.90 -$7.20) versus the consensus of $7.04.
  • Price Action: SAIC shares traded higher by 1.25% at $92.21 on the last check Thursday.
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Posted In: EarningsNewsGuidanceDividendsBriefs
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