Government IT services provider Science Applications International Corporation (NASDAQ: SAIC) will be reporting results tomorrow before the bell. Here’s what investors should know.
SAIC beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.98 billion, up 4.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Is SAIC a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SAIC’s revenue to grow 4.3% year on year to $1.81 billion, a reversal from the 11.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SAIC has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.
Looking at SAIC’s peers in the government & technical consulting segment, some have already reported their Q4 results, giving us a hint as to what we can expect. UL Solutions delivered year-on-year revenue growth of 8%, beating analysts’ expectations by 1.9%, and NV5 Global reported revenues up 14.7%, topping estimates by 1.6%. UL Solutions traded down 4.5% following the results while NV5 Global was up 1.8%.
Read our full analysis of UL Solutions’s results here and NV5 Global’s results here.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
