Science Applications International Corp. (NYSE: SAI) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has reported earnings for both its 2016 fiscal year and fourth quarter that came in above analyst forecasts.
The McLean, Virginia-based contractor’s full-year earnings totaled $2.85 per share to exceed Wall Street expectations by 10 cents and fourth quarter EPS reached 74 cents to top the analyst outlook by 13 cents.
SAIC runs its fiscal calendar on a February-January basis.
Profit for the 12-month period fell 17.02 percent year-over-year to $117 million and fourth quarter net income declined 22.22 percent from the same time frame in fiscal 2015 to $28 million, both on incremental term loan borrowings and costs related to the company’s $790 million acquisition of Scitor.
Full fiscal 2016 revenue came in at $4.28 billion and fourth quarter sales were $1.07 billion, figures that respectively exclude $31 million and $3 million from former parent Leidos Holdings (NYSE: LDOS).
CEO Tony Moraco told investors the company expects to pursue what he called “more larger opportunities” for new work such as information technology services as agencies a stable spending environment under the two-year budget agreement signed in the fall.
Wall Street analysts expected the company at $4.3 billion in revenue for the full fiscal year and $1.08 billion for the fourth quarter.
SAIC said Scitor contributed $428 million in revenue over the full fiscal year and $133 million for the November-January period.
Excluding Scitor, the company reported flat internal revenue of $3.83 billion for the full fiscal year and a nominal 1.1-percent year-over-year decline to $941 million for the quarter.
Analysts have modeled their fiscal 2017 forecasts for SAIC at $2.99 earnings per share and $4.53 billion in revenue and the company does not release guidance for its financial outlook.
As of Monday’s close, shares in SAIC are up 1.68 percent from the start of the year and down 14.37 percent over 12 months.
