From Nasdaq: 2024-06-04 10:30:00

Science Applications International Corporation (SAIC) saw a sharp 11.8% drop in shares after reporting lower-than-expected first-quarter fiscal 2025 results. Adjusted earnings of $1.92 per share missed estimates by one cent. Revenues fell 9% to $1.85 billion, primarily due to the divestiture of a division, but adjusted for this, the top line increased by 0.4%.

The company’s adjusted EBITDA dropped 12% year-over-year to $166 million, with a margin contraction of 30 basis points to 9%. Net bookings for the quarter were $2.6 billion, with a backlog of signed deals at $23.6 billion, of which $3.46 billion was funded. Operating and free cash flows were $98 million and $13 million, respectively.

Looking ahead, SAIC reiterated its fiscal 2025 guidance, expecting revenues between $7.35-$7.50 billion and adjusted earnings of $8-$8.20 per share. The company also projects adjusted EBITDA of $680-$700 million and free cash flow in the range of $490-$510 million. SAIC currently holds a Zacks Rank #3 (Hold), with shares down 4.4% year-to-date.

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Read more at Nasdaq: Science Applications (SAIC) Q1 Earnings Miss, Shares Fall 12%