Government IT services provider Science Applications International Corporation (NASDAQ: SAIC) will be reporting results this Monday morning. Here’s what to look for.
SAIC met analysts’ revenue expectations last quarter, reporting revenues of $1.87 billion, down 5.6% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive 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 for active Edge members.
This quarter, the market is expecting SAIC’s revenue to decline 3.8% year on year, a reversal from the 5.8% increase it recorded in the same quarter last year.
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 missed Wall Street’s revenue estimates multiple times over the last two years.
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. Jacobs Solutions delivered year-on-year revenue growth of 8.2%, beating analysts’ expectations by 1.7%, and ICF International reported a revenue decline of 10.6%, topping estimates by 1%. Jacobs Solutions traded up 7.8% following the results while ICF International was also up 4.3%.
Read our full analysis of Jacobs Solutions’s results here and ICF International’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the government & technical consulting stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. SAIC is up 5.8% during the same time and is heading into earnings with an average analyst price target of $116.22 (compared to the current share price of $91.63).
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