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Science Applications International Corporation (SAIC) Earnings and Stock Analysis

Science Applications International Corporation (SAIC) is a global technology and engineering company providing a broad range of services and solutions to the United States government, commercial customers, and international organizations. The company’s core markets include national security, energy, environment, and health. SAIC is traded on the New York Stock Exchange under the ticker symbol SAIC.

Recent Earnings Performance

SAIC’s recent earnings performance has been strong. In the fiscal year ending January 31, 2023, the company reported revenue of $7.2 billion, up 10% from the previous year. Diluted earnings per share (EPS) was $9.15, up from $7.64 in fiscal 2022.

For the fiscal year ending January 31, 2024, SAIC expects revenue to be between $7.20 billion and $7.25 billion. The company also expects adjusted diluted EPS to be between $7.20 and $7.40.

Stock Price Performance

SAIC’s stock price has performed well in recent years. As of December 4, 2023, the stock price was $122.70, up from $95.43 on December 4, 2022. The stock’s 52-week high is $123.53, and its 52-week low is $95.43.

Key Financial Ratios

Here are some of SAIC’s key financial ratios as of December 4, 2023:

  • Price-to-earnings (P/E) ratio: 13.11
  • Price-to-book (P/B) ratio: 2.80
  • Price-to-sales (P/S) ratio: 1.73
  • Debt-to-equity ratio: 0.52
  • Dividend yield: 1.21%

Analyst Recommendations

The majority of analysts have a buy rating on SAIC stock. As of December 4, 2023, 11 analysts have a buy rating, 1 analyst has a hold rating, and 0 analysts have a sell rating. The average analyst price target is $132.86.

Risks and Factors to Consider

As with all investments, there are risks associated with investing in SAIC stock. Some of the key risks to consider include:

  • Exposure to government spending: SAIC is a government contractor, and its revenue is therefore dependent on government spending levels. A decrease in government spending could negatively impact SAIC’s financial performance.
  • Competition: SAIC faces competition from a number of other large technology and engineering companies. These companies are all vying for the same government and commercial contracts.
  • Execution risk: SAIC’s success depends on its ability to execute its contracts successfully. If the company experiences delays or cost overruns on its contracts, it could negatively impact its financial performance.

Conclusion

SAIC is a strong company with a long history of success. The company has a strong track record of earnings growth, and its stock price has performed well in recent years. However, there are some risks associated with investing in SAIC stock, including exposure to government spending, competition, and execution risk. Investors should carefully consider these risks before investing in SAIC stock.