Zacks Research Has Pessimistic Outlook of SAIC Q3 Earnings

Key Points

• Zacks Research lowered its Q3 2027 EPS estimate for SAIC to $2.30 from $2.42, while projecting full-year 2027 earnings of $10.70 per share.
• SAIC’s latest quarterly results exceeded expectations, with EPS of $3.01 versus the $2.31 consensus and revenue of $1.88 billion, up 6.3% year over year.
• Analyst sentiment remains cautious: SAIC has a consensus “Hold” rating and a $125.22 target price, below its reported opening price of $133.30.

Science Applications International Corporation (NASDAQ:SAIC - Free Report) - Analysts at Zacks Research decreased their Q3 2027 earnings per share estimates for shares of Science Applications International in a report issued on Monday, September 21st. Zacks Research analyst Team now expects that the company will post earnings of $2.30 per share for the quarter, down from their prior forecast of $2.42. The consensus estimate for Science Applications International's current full-year earnings is $10.78 per share. Zacks Research also issued estimates for Science Applications International's Q4 2027 earnings at $2.16 EPS, FY2027 earnings at $10.70 EPS, Q1 2028 earnings at $2.65 EPS, Q2 2028 earnings at $2.64 EPS, Q3 2028 earnings at $2.75 EPS, FY2028 earnings at $10.74 EPS, Q1 2029 earnings at $2.84 EPS, Q2 2029 earnings at $2.85 EPS and FY2029 earnings at $11.70 EPS.

Science Applications International (NASDAQ:SAIC - Get Free Report) last announced its quarterly earnings results on Monday, August 31st. The company reported $3.01 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.70. Science Applications International had a net margin of 5.13% and a return on equity of 34.68%. The company had revenue of $1.88 billion for the quarter, compared to analysts' expectations of $1.76 billion. During the same quarter in the previous year, the business posted $3.63 earnings per share. Science Applications International's quarterly revenue was up 6.3% on a year-over-year basis.

Several other equities research analysts have also recently weighed in on the company. TD Cowen reissued a "hold" rating on shares of Science Applications International in a research note on Monday, August 31st. Weiss Ratings raised Science Applications International from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 24th. UBS Group lifted their target price on Science Applications International from $108.00 to $123.00 and gave the stock a "neutral" rating in a report on Tuesday, September 1st. Jefferies Financial Group boosted their target price on Science Applications International from $130.00 to $140.00 and gave the company a "hold" rating in a research report on Tuesday, September 1st. Finally, JPMorgan Chase & Co. increased their price target on Science Applications International from $110.00 to $125.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Science Applications International presently has a consensus rating of "Hold" and a consensus target price of $125.22.

Science Applications International Stock Up 0.1%

Shares of NASDAQ:SAIC opened at $133.30 on Tuesday. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.71. Science Applications International has a 12 month low of $81.08 and a 12 month high of $142.66. The company has a 50-day moving average price of $124.21 and a 200 day moving average price of $109.13. The company has a market cap of $5.59 billion, a price-to-earnings ratio of 15.59 and a beta of 0.30.

Science Applications International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be issued a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, October 9th. Science Applications International's dividend payout ratio is presently 17.31%.

Institutional Investors Weigh In On Science Applications International

A number of institutional investors and hedge funds have recently modified their holdings of the business. Bank of America Corp DE raised its holdings in shares of Science Applications International by 17.5% in the 1st quarter. Bank of America Corp DE now owns 380,538 shares of the company's stock valued at $36,121,000 after purchasing an additional 56,720 shares in the last quarter. Islay Capital Management LLC purchased a new stake in shares of Science Applications International in the 4th quarter worth approximately $971,000. Dimensional Fund Advisors LP boosted its stake in shares of Science Applications International by 13.7% during the first quarter. Dimensional Fund Advisors LP now owns 1,535,288 shares of the company's stock valued at $145,730,000 after purchasing an additional 185,066 shares in the last quarter. Stephens Inc. AR purchased a new position in Science Applications International during the first quarter valued at approximately $1,132,000. Finally, Cetera Investment Advisers boosted its position in Science Applications International by 47.2% during the 1st quarter. Cetera Investment Advisers now owns 29,781 shares of the company's stock valued at $2,827,000 after acquiring an additional 9,550 shares in the last quarter. 76.00% of the stock is owned by institutional investors.

Science Applications International Company Profile

Science Applications International Corporation (SAIC) is a technology integrator and government services contractor that provides mission-critical solutions to the U.S. government. The company supports defense, intelligence, space, civilian, and federal law enforcement organizations with services designed to improve operational performance, modernize legacy systems, and address complex national security and public-sector challenges.

SAIC's offerings include information technology modernization, cloud computing, cybersecurity, artificial intelligence and data analytics, digital engineering, software development, systems integration, and enterprise IT services.

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