What's Going On With Science Applications Stock Today?
Portfolio Pulse from Anusuya Lahiri
Science Applications International Corp (SAIC) reported a 12% revenue decline Y/Y in Q4 fiscal 2024 to $1.74 billion, beating consensus of $1.64 billion. Adjusted EPS was $1.43, in line with consensus. The decline was mainly due to the sale of the logistics and supply chain management business, deconsolidation of FSA, and contract completions. Adjusting for these, revenues grew by 7.7%. Adjusted operating and EBITDA margins declined, and free cash flow was $97 million versus $148 million a year ago. Net bookings were $1.4 billion with a backlog of $23.1 billion. A dividend of $0.37 per share was declared. FY25 revenue outlook is raised to $7.35 billion - $7.50 billion, with adjusted EPS guidance of $8.00 - $8.20. SAIC shares dropped 9.14% in premarket trading. Investors can also gain exposure through BCDF and CWS ETFs.
March 18, 2024 | 12:31 pm
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NEGATIVE IMPACT
Investors can gain exposure to SAIC through the Horizon Kinetics Blockchain Development ETF (BCDF), which may be impacted by SAIC's stock performance.
Given that BCDF provides exposure to SAIC, the negative performance of SAIC could indirectly affect BCDF's performance in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
AdvisorShares Focused Equity ETF (CWS) offers another avenue for investment in SAIC. The ETF's performance may be influenced by SAIC's financial results and stock movements.
As CWS includes SAIC in its holdings, the downturn in SAIC's stock following its earnings report could potentially impact CWS's short-term performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
SAIC reported a 12% Y/Y revenue decline in Q4 fiscal 2024 but beat consensus estimates. Adjusted EPS was in line with expectations. Despite a challenging quarter, the company raised its FY25 revenue outlook and declared a dividend.
The premarket stock price decline of 9.14% indicates a negative short-term impact, likely due to the reported revenue decline and the market's reaction to the financial results and future outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100