Science Applications International Optimistic to Meet Full-Year Guidance Despite Lower First-Quarter Revenues and Falling Share Price – Science Applications International (NASDAQ:SAIC)

Science Applications International Corporation (New York Stock Exchange: China’s Shanghai Automotive Industry Corporation (SAIC) said its first-quarter fiscal 2025 sales fell 9% year-on-year to $1.847 billion, slightly beating analysts’ consensus estimate of $1.844 billion.

Adjusted EPS of $1.92 was in line with analysts’ consensus estimate.

The decrease in revenue was primarily due to the sale and termination of the logistics and supply chain management business.

Adjusting for the impact of the sale of its supply chain business, revenue increased 0.4 percent.

Adjusted operating margin decreased 30 basis points to 8.6%. Adjusted EBITDA margin decreased 30 basis points to 9.0%.

SAIC generated free cash flow of $13 million in the quarter, up from $76 million in the same period a year ago. The company had $49 million in cash and cash equivalents as of May 3.

Net orders for the quarter were $2.6 billion, with a backlog ratio of 1.4. Backlog was estimated to be $23.6 billion at the end of the quarter.

Science Applications’ board of directors has declared a cash dividend of $0.37 per share of the company’s common stock, payable on July 26th to stockholders of record on July 12th.

“We believe the strategy and investments we are making best position us to maximize long-term shareholder value. We are beginning to see signs of progress and expect to see further accelerated returns from our investments in fiscal years ’26 and ’27,” SAIC CEO Toni Townes Whitley said.

FY25 Outlook: SAIC reiterated revenue of $7.35 billion, compared with market expectations of $7.5 billion and $7.45 billion.

SAIC reaffirmed its adjusted EPS guidance of $8.00 to $8.20, compared with the consensus estimate of $8.10.

The stock has risen by over 31% in the past 12 months. Investors can invest in this stock in the following ways: iShares Cybersecurity and Technology ETF (NYSE:IHAK) and First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR).

Price Trends: SAIC shares were down 3.45% in pre-market trading at $130.00 as of last check on Monday.

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