Science Applications Intl (NYSE:SAIC) is gearing up to announce its quarterly earnings on Thursday, 2024-12-05. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Science Applications Intl will report an earnings per share (EPS) of $2.21.
The market awaits Science Applications Intl's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
The company's EPS beat by $0.20 in the last quarter, leading to a 1.57% drop in the share price on the following day.
Here's a look at Science Applications Intl's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.85 | 1.92 | 1.46 | 1.69 |
| EPS Actual | 2.05 | 1.92 | 1.43 | 2.27 |
| Price Change % | -2.0% | -1.0% | -1.0% | -3.0% |
Stock Performance
Shares of Science Applications Intl were trading at $123.01 as of December 03. Over the last 52-week period, shares are down 4.56%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analyst Views on Science Applications Intl
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Science Applications Intl.
Analysts have provided Science Applications Intl with 10 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $153.4, suggesting a potential 24.71% upside.
Comparing Ratings Among Industry Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Dun & Bradstreet Hldgs, FTI Consulting and KBR, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- The prevailing sentiment among analysts is an Buy trajectory for Dun & Bradstreet Hldgs, with an average 1-year price target of $14.5, implying a potential 88.21% downside.
- The prevailing sentiment among analysts is an Buy trajectory for FTI Consulting, with an average 1-year price target of $275.0, implying a potential 123.56% upside.
- KBR is maintaining an Buy status according to analysts, with an average 1-year price target of $79.0, indicating a potential 35.78% downside.
Overview of Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Dun & Bradstreet Hldgs, FTI Consulting and KBR, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Science Applications Intl | Neutral | 1.91% | $210M | 4.79% |
| Dun & Bradstreet Hldgs | Buy | 3.50% | $389.60M | 0.10% |
| FTI Consulting | Buy | 3.67% | $297.94M | 3.02% |
| KBR | Buy | 10.00% | $291M | 6.88% |
Key Takeaway:
Science Applications Intl is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth, indicating lower growth compared to peers. In terms of gross profit, it is at the top, reflecting strong profitability. However, its return on equity is at the bottom, suggesting lower returns for shareholders compared to peers.
About Science Applications Intl
Science Applications International Corp provides technical, engineering, and enterprise IT services mainly to the U.S. government. Specifically, the company offers engineering, systems integration, and information technology for large government projects and a broad range of services with an emphasis on higher-end technology services. The company's end-to-end enterprise IT offerings span the entire spectrum of customers' IT infrastructure.
Unraveling the Financial Story of Science Applications Intl
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Science Applications Intl displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 1.91%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: Science Applications Intl's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 4.46%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.79%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Science Applications Intl's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.54%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.43, caution is advised due to increased financial risk.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
