Latest news with #ScienceApplicationsInternational
Yahoo
18 hours ago
- Business
- Yahoo
Why SAIC Stock Plunged Today
SAIC missed earnings expectations despite in-line revenue. The company is fighting through DOGE-related headwinds, but is an attractive long-term option. 10 stocks we like better than Science Applications International › Government contractor Science Applications International (NASDAQ: SAIC) reported disappointing quarterly results, weighed down by the government's efficiency drive. Investors were disappointed, sending SAIC shares down 13% for the day. SAIC is one of the largest so-called "Beltway Bandits" -- defense contractors focused on providing IT and other services to military, intelligence, and civil government customers. The company earned $1.92 per share in its fiscal first quarter of 2026 on revenue of $1.88 billion, compared to analyst expectations for $2.12 per share in earnings on sales of $1.87 billion. Net income was down 12% year over year to $68 million, and SAIC's operating margin fell by 70 basis points to 6.4%. On a call with investors, CEO Toni Townes-Whitley said that the business has been caught up in the efforts of the newly formed Department of Government Efficiency (DOGE) to scrutinize spending. Townes-Whitley said: While the operating environment has stabilized in recent months and recent budget developments provide improved clarity around future spending, we continue to see higher rates of turnover among our customers, contributing to procurement delays and award timelines moving to the right. We expect conditions to remain very fluid over the next few months as budget negotiations play out and agencies continue to implement the strategic priorities of this administration. The good news is the company expects DOGE to impact full-year revenue by less than 1%. The company booked $2.4 billion in future business in the quarter, which is 1.3 times the revenue it brought in, an indication of better times ahead. And SAIC reiterated its full-year guidance, implying that the company sees opportunities to make back the profit miss in the quarters to come. The question is how soon those better times will arrive. Townes-Whitley and other executives have said the DOGE impact so far, is more to delay procurements than to tear up contracts. But with a Congressional budget battle brewing, there is unlikely to be clarity about future spending anytime soon. With Monday's fall, SAIC is trading at just 10 times future earnings. That's nearing a recent historical low. It's possible we haven't bottomed out yet, but for long-term-focused investors, SAIC has reached a level where it is worth adding to the watch list. Before you buy stock in Science Applications International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Science Applications International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why SAIC Stock Plunged Today was originally published by The Motley Fool
Forbes
3 days ago
- Business
- Forbes
How Will SAIC Stock React To Its Upcoming Earnings?
CANADA - 2025/03/05: In this photo illustration, the Saic (Science Applications International ... More Corporation) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Science Applications International (NASDAQ:SAIC), a technology and engineering firm that mainly provides services to the U.S. government, is set to announce its earnings on Monday, June 2, 2025. For traders driven by events, historical data indicates a tendency for a favorable one-day return in the stock after its earnings release. In the past five years, SAIC's stock has seen a positive one-day return in 63% of cases following earnings announcements. The median positive one-day return was 3.7%, with a maximum ability to yield a one-day return of 13.4%. While actual results compared to consensus estimates and overall expectations will be critical, being aware of these historical trends may provide an advantage for traders. There are two main strategies to utilize this information: Analysts estimate SAIC will report earnings of $2.12 per share on revenue of $1.87 billion. This is compared to the earnings of $1.92 per share on sales of $1.85 billion from the same quarter last year. From a fundamental standpoint, SAIC currently holds a market capitalization of $5.6 billion. In the past twelve months, the firm generated $7.5 billion in revenue, with operating profits of $561 million and net income of $362 million. That said, if you're looking for potential gains with reduced volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and achieving returns of over 91% since its launch. See earnings reaction history of all stocks Here are some insights regarding one-day (1D) post-earnings returns: Further data regarding the observed 5-Day (5D) and 21-Day (21D) returns post-earnings are compiled along with the respective statistics in the table below. SAIC 1D, 5D, and 21D Post Earnings Return A relatively lower-risk strategy (though it may not be useful if the correlation is minimal) is to comprehend the correlation between short-term and medium-term returns post earnings, pinpoint a pair that shows the strongest correlation, and execute the correct trade. For instance, if 1D and 5D demonstrate the highest correlation, a trader can position themselves "long" for the following 5 days if the 1D post-earnings return is favorable. Here is some correlation information based on the 5-year and more recent 3-year history. Note that the 1D_5D correlation refers to the relationship between 1D post-earnings returns and the subsequent 5D returns. SAIC Correlation Between 1D, 5D and 21D Historical Returns Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (which combines all 3 — the S&P 500, S&P mid-cap, and Russell 2000), delivering robust returns for investors. Separately, if you're looking for potential gains with a steadier experience than an individual stock like Science Applications International, consider the High Quality portfolio, which has outperformed the S&P and achieved returns exceeding 91% since its inception.
Yahoo
19-03-2025
- Business
- Yahoo
Science Applications International Full Year 2025 Earnings: EPS Beats Expectations
Revenue: US$7.48b (flat on FY 2024). Net income: US$362.0m (down 24% from FY 2024). Profit margin: 4.8% (down from 6.4% in FY 2024). EPS: US$7.23 (down from US$8.98 in FY 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.6%. Looking ahead, revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Professional Services industry in the US. Performance of the American Professional Services industry. The company's shares are up 6.8% from a week ago. It is worth noting though that we have found 2 warning signs for Science Applications International that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
Positive week for Science Applications International Corporation (NASDAQ:SAIC) institutional investors who lost 20% over the past year
Given the large stake in the stock by institutions, Science Applications International's stock price might be vulnerable to their trading decisions A total of 14 investors have a majority stake in the company with 50% ownership Recent sales by insiders A look at the shareholders of Science Applications International Corporation (NASDAQ:SAIC) can tell us which group is most powerful. With 77% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk). Last week's US$757m market cap gain would probably be appreciated by institutional investors, especially after a year of 20% losses. Let's take a closer look to see what the different types of shareholders can tell us about Science Applications International. View our latest analysis for Science Applications International Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. Science Applications International already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Science Applications International's historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Science Applications International. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.8% of shares outstanding. For context, the second largest shareholder holds about 9.7% of the shares outstanding, followed by an ownership of 4.7% by the third-largest shareholder. After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that Science Applications International Corporation insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$54m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. The general public, who are usually individual investors, hold a 22% stake in Science Applications International. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Science Applications International better, we need to consider many other factors. For example, we've discovered 3 warning signs for Science Applications International that you should be aware of before investing here. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
