SAIC (SAIC) Q1 Earnings Miss Estimates

SAIC reported quarterly earnings of $1.92 per share, missing the Zacks Consensus Estimate of $2.14, representing a negative surprise of 10.28%. Revenues for the quarter ended April 2025 were $1.88 billion, slightly surpassing the consensus estimate by 0.71%. The company's Zacks Rank is currently a #3 (Hold), suggesting near-term performance in line with the market, and future performance will depend on earnings estimate revisions.

Analysis

Science Applications International Corporation (SAIC) reported mixed results for its quarter ended April 2025, with quarterly earnings per share (EPS) of $1.92, which missed the Zacks Consensus Estimate of $2.14 by 10.28%. This EPS figure was flat compared to the $1.92 per share earned a year ago. Despite the earnings miss, SAIC posted revenues of $1.88 billion, surpassing the Zacks Consensus Estimate by 0.71% and showing a slight increase from the year-ago revenues of $1.85 billion. Historically, SAIC has demonstrated a stronger performance, having surpassed consensus EPS estimates in three of the last four quarters and revenue estimates in all four of the last four quarters. Year-to-date, SAIC shares have appreciated approximately 3.4%, outperforming the S&P 500's 0.5% gain. However, the recent earnings miss has led to a mixed outlook. Prior to this report, the estimate revisions trend for SAIC was mixed, contributing to its current Zacks Rank #3 (Hold), which suggests the stock is expected to perform in line with the market in the near future. The sustainability of its stock price movement will heavily depend on management's commentary during the earnings call and subsequent revisions to earnings estimates. Current consensus estimates project EPS of $2.21 on $1.86 billion in revenues for the upcoming quarter, and $9.19 EPS on $7.67 billion in revenues for the current fiscal year. The Computers - IT Services industry, to which SAIC belongs, is ranked in the top 38% of over 250 Zacks industries, indicating a generally favorable sector environment.

Key Decisions for Investors

• Investors should closely scrutinize management's commentary on the upcoming earnings call for explanations regarding the Q1 earnings shortfall and guidance on future profitability to gauge the stock's immediate trajectory.
• Given the -10.28% earnings surprise against a backdrop of consistent revenue beats and prior EPS outperformance, monitor upcoming earnings estimate revisions closely, as these will be critical in determining any change to the current Zacks Rank #3 (Hold) status.