NASDAQ$SAIC

Science Applications International Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

SAIC's Q3 2024 earnings were announced, revealing a mix of divestiture impacts and organic growth.

SAIC reported revenues of $1.90 billion, a 1% decrease year-over-year, but experienced 10.6% organic growth when adjusted for divestitures. Net income reached $93 million, with adjusted EBITDA at $178 million, reflecting a 9.4% margin. The company increased its revenue and adjusted diluted EPS guidance for fiscal year 2024.

  • Revenues reached $1.90 billion, reflecting a 10.6% organic growth rate when adjusted for divestitures.
  • Net income was reported at $93 million, with an adjusted EBITDA of $178 million, marking a 9.4% margin on revenues.
  • Diluted earnings per share stood at $1.76, while adjusted diluted earnings per share reached $2.27.
  • Cash flows from operating activities amounted to $101 million, and transaction-adjusted free cash flow was $148 million.

Headline financials

Total Revenue

$1.9B

Previous: $1.91B-0.7%
EPS (adj)

$2.27

Previous: $1.90+19.5%
Total backlog

$23.1B

Previous: $24.4B-5.3%
Capital Expenditures

-$16M

Previous: -$18M+11.1%
Free Cash Flow

$77M

Previous: $62M+24.2%
Net Income

$93M

Previous: $80M+16.3%
Operating Income

$143M

Previous: $133M+7.5%
Gross Profit

$229M

Previous: $221M+3.6%
Cash & Equivalents

$311M

Previous: $53M+486.8%
Total Assets

$5.66B

Previous: $5.63B+0.5%
Stock-Based Comp

$15M

Previous: $12M+25.0%

Revenue & EPS history

SAIC · Revenue · Quarterly

$1.9B

Q3 2024-0.7%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

SAIC updated its fiscal year 2024 guidance, projecting revenues between $7.325B and $7.350B, an adjusted EBITDA margin of 9.3% to 9.4%, adjusted diluted EPS between $7.70 and $7.90, and transaction-adjusted free cash flow between $460M and $480M.

Tailwinds

  • Revenue is projected to be between $7.325B and $7.350B.
  • Adjusted EBITDA margin is expected to be between 9.3% and 9.4%.
  • Adjusted Diluted EPS is anticipated to be between $7.70 and $7.90.
  • Transaction-Adjusted Free Cash Flow is guided to be between $460M and $480M.
  • The company's focus on strategic pivots across innovation, go-to-market, culture, and brand is expected to drive continued success.

Headwinds

  • Guidance excludes expected cash tax and other payments of approximately $82M related to the L&SCM sale which will impact cash flows provided by operating activities in the second, third and fourth quarters of fiscal year 2024.
  • The company's future performance is subject to risks, uncertainties, and assumptions, including those discussed in the company's SEC filings.
  • Actual results may differ materially from the guidance and other forward-looking statements.
  • The company expressly disclaims any duty to update any forward-looking statement.
  • The variability of certain deductions for non-GAAP exclusions used to calculate net income may have an unpredictable and potentially significant impact on future GAAP financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.2%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.1%

Avg return

30 days after

54%

31 / 57 earnings

Positive

+16.4%

Q3 2026

Best reaction

-18.4%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.2%+5.3%+4.7%
Q3 2026+16.4%+11.2%+15.6%
Q2 2026-6.8%-9.9%-10.9%
Q1 2026-13.2%-8.8%+1.7%
Q4 2025+7.2%+1.4%+11.4%
Q3 2025-4.7%-6.4%-7.9%
Q2 2025+3.0%+4.4%+12.7%
Q1 2025-12.9%-14.1%-13.6%
Q4 2024-11.2%-11.3%-12.6%
Q3 2024+9.9%+6.5%+2.9%
Q2 2024-4.5%-3.7%-7.7%
Q1 2024+1.7%+4.2%+11.6%
Q4 2023-0.0%+0.4%-7.0%
Q3 2023+5.4%+1.1%-0.4%
Q2 2023+0.9%+1.0%-2.9%
Q1 2023+7.5%+2.1%+6.7%
Q4 2022-0.7%+1.2%-6.7%
Q3 2022-1.0%-3.3%+1.4%
Q2 2022+3.6%+1.1%+2.2%
Q1 2022+2.5%+0.8%-4.7%
Q4 2021-15.6%-12.0%-7.9%
Q3 2021+3.9%+3.5%+0.5%
Q2 2021+0.5%-0.8%-4.3%
Q1 2021-3.2%-2.2%-14.4%
Q4 2020+6.6%+10.9%+26.6%
Q3 2020+0.5%-1.5%+4.5%
Q2 2020-7.1%-9.0%-5.5%
Q1 2020+8.5%+7.1%+11.0%
Q4 2019+5.0%+3.8%+1.0%
Q3 2019+7.1%+6.7%-1.3%
Q2 2019-10.6%-11.5%-18.6%
Q1 2019-8.5%-9.0%-3.3%
Q4 2018+9.3%+12.9%+17.6%
Q3 2018+9.4%+5.7%+6.7%
Q2 2018-18.4%-16.9%-7.3%
Q1 2018-3.3%-7.9%-6.1%
Q4 2017-13.7%-14.4%-15.4%
Q3 2017+8.0%+3.4%+4.2%
Q2 2017+1.8%+1.8%+4.6%
Q1 2017+1.2%-2.1%+4.6%
Q4 2016+12.3%
Q3 2016-0.9%
Q2 2016-12.3%
Q1 2016-4.5%
Q4 2015-6.2%
Q3 2015+2.5%
Q2 2015+1.7%
Q1 2014+12.1%
Q1 2015+12.1%
Q4 2012+7.8%
Q1 2013+7.8%
Q4 2014+10.2%
Q3 2013-7.9%
Q3 2014-5.4%
Q4 2013-0.4%
Q2 2014-0.4%
Q2 2013-0.4%
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2010

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