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SAIC Awarded Position on $45 Million IT Modernization Contract for National Institutes of Health
RESTON, Va.--(BUSINESS WIRE)--
Science Applications International Corp. (SAIC) was awarded a position on the National Institutes of Health Business and Professional Support Services II (NIHBPSSII) contract to provide a broad range of IT services and support.
NIHBPSSII is a multiple-award, indefinite-delivery, indefinite-quantity contract that has a one-year base period, two one-year options, and a $45 million ceiling value. SAIC is one of 14 awardees.
“This is a strategic win in support of the Department of Health and Human Services and NIH Centers of Excellence (CoEs) to advance their IT modernization initiatives and deliver improved services to the public,” said Bob Genter, executive vice president and general manager of SAIC’s Civilian Markets Customer Group. “We look forward to delivering our proven IT expertise, and tailoring our solutions to the unique needs of NIH.”
The NIHBPSSII contract affords customers the ability to order services after requirements materialize, providing the National Institutes of Health with flexibility in both quantities and delivery scheduling. Under the contract, SAIC will deliver a full range of business operations and professional support services.
The NIHBPSSII contract will be used primarily by the NIH, but may also be used by other portions of the U.S. Department of Health and Human Services and other federal agencies.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190409005336/en/
Contact:
SAIC Media Contact:
Lauren Presti
703-676-8982
lauren.a.presti@saic.com
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What Should Investors Know About Science Applications International Corporation's (NYSE:SAIC) Growth?
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After Science Applications International Corporation's (NYSE:SAIC) earnings announcement on 01 February 2019, analyst consensus outlook appear vastly optimistic, as a 71% rise in profits is expected in the upcoming year, against the past 5-year average growth rate of 8.8%. By 2020, we can expect Science Applications International’s bottom line to reach US$235m, a jump from the current trailing-twelve-month of US$137m. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Science Applications International
Exciting times ahead?
Over the next three years, it seems the consensus view of the 7 analysts covering SAIC is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, SAIC's earnings should reach US$326m, from current levels of US$137m, resulting in an annual growth rate of 26%. EPS reaches $6.14 in the final year of forecast compared to the current $3.16 EPS today. With a current profit margin of 2.9%, this movement will result in a margin of 4.7% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Science Applications International, I've put together three important aspects you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation:
What is Science Applications International worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Science Applications International is currently mispriced by the market.
https://www.yahoo.com/finance/news/investors-know-science-applications-international-124646280.html
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Science Applications Jumps on Fourth-Quarter Earnings Beat
The company's adjusted earnings in the fourth quarter easily top Wall Street forecasts.
Shares of engineering and enterprise IT services provider Science Applications (SAIC - Get Report) were up nearly 7% Friday after the company reported fourth-quarter results well ahead of expectations.
The Reston, Virginia-based company reported adjusted earnings of $1.17 per share, easily topping Zacks Invest Research expectations for 89 cents. Revenue of $1.19 billion also beat forecasts of $1.18 billion.
The company also announced it was raising its quarterly dividend 20% to 37 cents per share, payable April 26, to stockholders of record on April 12.
"SAIC's full-year results reflect our strongest financial performance in five years and we are better positioned than ever to accelerate our strategy to deliver sustained profitable growth," said CEO Tony Moraco. "As we look to the future, the recent acquisition of Engility provides increased momentum in delivering the value proposition to all of our stakeholders."
https://www.thestreet.com/investing/earnings/science-applications-jumps-on-earnings-beat-14911254?puc=yahoo&cm_ven=YAHOO&yptr=yahoo
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SAIC aims to stay ahead of the talent hunt as HQ2 approaches
Science Applications International Corp. said it scored its best year last year in five fiscal years, in part due to its acquisition of Engility Holdings Inc. and new federal IT contracting work.
But outgoing CEO Tony Moraco and CEO-elect Nazzic Keene said they have kept an eye toward the one scare resource they say is necessary to power any future gains: tech talent.
Amid the Reston government contractor’s growth in the IT modernization and space markets, Moraco said on SAIC’s earnings call Thursday that demand for human capital remained a key focus for the company, especially as it becomes more sought after in the Washington marketplace. Amid the federal government’s push to recruit more IT and cybersecurity professionals and the pending arrival of Amazon HQ2, concerns about a tech talent drought in the D.C. area have abounded and led to fierce competition.
“The talent piece is critical to our business, both retention and attracting,” Moraco said. “We have looked across the U.S. really to diversify the geographic component. We’ve mentioned in the past that our customers have seen that same talent challenge, and so are more open to, let’s say, a virtual workforce.”
Moraco said that SAIC has tried to navigate talent challenges by developing hubs outside of the D.C. area, such as the company’s Technology Integration Gateway in Cookeville, Tennessee, a site that opened in May 2017 with plans to employ 300 IT professionals by 2022.
“Top of mind for us is to really draw that talent in,” he said. “Mission, I think, still is a critical factor, as well as the culture of the company. I think our added scale provides a lot of career opportunities for folks to join us, but it has its challenges, and we are just going to continue to try and differentiate.”
The addition of Engility has helped to infuse more talent — especially new employees with government security clearances — into what is a broader customer base that now includes space industry contracts alongside SAIC’s diverse business operations, Moraco said.
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“Given, again, the reposition with our [security] cleared workforce, it really allows us broader base of technology experts,” he said. “That will facilitate additional growth in the cross-sell of SAIC capabilities into legacy Engility channels. It’s a broader people dimension, and our presence with a broader set of customers always facilitates opportunities for further growth.”
SAIC officials previously said when the Engility deal closed in January that the company had grown to 23,000 employees, up from 15,000 in 2017.
Keene, who is overseeing the day-to-day operations of the company as COO before officially becoming CEO on July 31, agreed that the Engility acquisition provides SAIC with a better on-ramp for talent because it allows for a wider range of operations on which to draw professionals.
“The greater the capacity, the more access [you get] to the broader talent base in particular areas,” she said.
Growth has not been a problem for SAIC in fiscal 2019, even with the costs of the Engility acquisition. The company saw a 6 percent gain, or $64 million, over its previous fourth-quarter earnings to total $1.2 billion in revenue for the quarter, in part, aided by the acquisition. SAIC closed on the Engility purchase in January, and its fourth fiscal quarter ended Feb. 1.
For the fiscal year, also ending Feb. 1, SAIC posted $205 million in revenue increases, a 5 percent gain over the prior year. The revenue was buoyed by $164 million in new contract awards for IT integration, increased supply chain portfolio orders and the Engility acquisition.
Nazzic added that the company could pursue mergers and acquisitions again to help foster more growth if it sees the proper opportunity.
“Our posture is relatively unchanged,” she said. “We will certainly look to M&A as a factor in our growth, but we are going to be very selective. It is something that will remain on the radar. We will be proactive where it makes sense, but again, we will remain pretty selective to ensure we will be doing the right deal at the right time.”
https://www.bizjournals.com/washington/news/2019/03/29/saic-aims-to-stay-ahead-of-the-talent-hunt-as-hq2.html?ana=yahoo&yptr=yahoo
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SAIC............UP, UP AND AWAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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5 Stocks Moving In Thursday's After-Hours Session
Gainers:
Science Applications International Corp (NYSE: SAIC) shares are up 7 percent after reporting a fourth-quarter earnings beat. Adjusted earnings came in at $1.17, beating estimates by 38 cents. Sales came in at $1.19 billion, beating estimates by $20 million. The company raised its quarterly dividend from 31 cents to 37 cents.
https://finance.yahoo.com/news/5-stocks-moving-thursdays-hours-211931442.html
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SAIC: Fiscal 4Q Earnings Snapshot
RESTON, Va. (AP) _ Science Applications International Corp. (SAIC) on Thursday reported a fiscal fourth-quarter loss of $9 million, after reporting a profit in the same period a year earlier.
On a per-share basis, the Reston, Virginia-based company said it had a loss of 20 cents. Earnings, adjusted for non-recurring costs, were $1.17 per share.
The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 89 cents per share.
The information technology company posted revenue of $1.19 billion in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $1.18 billion.
For the year, the company reported profit of $137 million, or $3.11 per share. Revenue was reported as $4.66 billion.
SAIC shares have risen 15 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $73.47, increasing slightly in the last 12 months.
https://finance.yahoo.com/news/saic-fiscal-4q-earnings-snapshot-205417011.html
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What's in Store for Science Applications (SAIC) Q4 Earnings?
Science Applications International Corporation SAIC is set to report fourth-quarter fiscal 2019 earnings on Mar 28.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 21.9%.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1.18 billion, reflecting a 4.17% improvement year over year. For earnings, the consensus estimate stands at 89 cents, indicating a decline of 23.28% year over year.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
SAIC continues to benefit from a strong performance of its contract portfolio. The company’s capability to sustain its existing contracts coupled with newly awarded contracts across the customer portfolio is a tailwind. Moreover, higher number of orders in its supply chain is a positive.
Further, achieving the AWS Government Competency Status last November is a critical advancement in the company’s cloud practice. The status boosts the confidence of SAIC government clients regarding the effective integration of SAIC’s technical expertise and knowledge of its AWS capabilities and services.
During the fiscal fourth quarter, the company was awarded a $57-million worth Seaport-e task order with a year-long base period and four more optional years by the U.S. Navy. This task order followed another Seaport-e task order worth $37 million, awarded to SAIC for providing the NSWC (Naval Surface Warfare Center), Panama City with its mission support services.
The company also completed the acquisition of Engility in the quarter under discussion, which is likely to help expand its market opportunity and drive its revenue and costs synergies.
However, it is feared that the partial government shutdown might have delayed new awards and contract wins for the company. Therefore, it remains to be seen how much impact the shutdown had on its top line.
What Our Model Says
Our proven Zacks model clearly indicates that a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SAIC has a Zacks Rank #3, which increases the predictive power of ESP but its Earnings ESP of -1.72% in the combination leaves surprise prediction inconclusive this earnings season.
https://www.yahoo.com/finance/news/whats-store-science-applications-saic-201608033.html
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SAIC Sponsors Washington Nationals Patriotic Series for Sixth Consecutive Year
[Business Wire]
Business Wire•March 21, 2019
RESTON, Va.--(BUSINESS WIRE)--
As presenting sponsor, SAIC will donate tickets for military personnel, veterans, first responders, and their families through partnering nonprofit organizations.
Science Applications International Corp. (SAIC) and the Washington Nationals will jointly present the Washington Nationals Patriotic Series, a four-game series that honors the men and women who currently serve or have served in the U.S. armed forces.
As the presenting sponsor, SAIC’s partnering nonprofits will distribute tickets paid for by SAIC to members of each organization including, but not limited to, active duty military personnel, reservists, retirees, veterans, wounded warriors, and their families.
The 2019 Patriotic Series includes the following games:
Military Appreciation Day – Tuesday, April 2 vs. Philadelphia Phillies at 7:05 p.m.
Memorial Day – Monday, May 27 vs. Miami Marlins at 7:05 p.m.
Independence Day – Thursday, July 4 vs. Miami Marlins at 11:05 a.m.
Heroes Day – Sunday, Sept. 1 vs. Miami Marlins at 1:35 p.m.
During the Military Appreciation Day game, SAIC will recognize Feeding America with its partner Capital Area Food Bank, the largest organization in the Washington metro area working to solve hunger.
For Memorial Day, SAIC will host Operation Homefront, a national organization that provides emergency assistance to military families.
In celebration of Independence Day, SAIC will recognize USO-Metro, which provides programs and services to military members and their families living and traveling throughout the Washington-Baltimore region.
Heroes Day, the Nationals’ Sept. 11, 2001 remembrance, will honor the Astronaut Scholarship Foundation, an organization that provides annually more than 50 scholarships to the brightest and most talented college students in science, technology, engineering and mathematics. On this day, SAIC will also honor Luke's Wings, an organization dedicated to the support of service members who have been wounded in battle.
In addition to the Patriotic Series, SAIC will sponsor the Patrick Corbin bobble head figurine, which will be given to the first 25,000 fans entering the park and attending the Saturday, Aug. 17 game against the Milwaukee Brewers.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190321005530/en/
Contact:
SAIC Media Contact:
Lauren Presti
703-676-8982
lauren.a.presti@saic.com
GO SAIC
Science Applications Secures $57M Contract From U.S. Navy
Science Applications International Corp. SAIC recently announced that it has been awarded a $57 million worth Seaport-e task order with a one year base period and four more optional years, by the U.S. Navy.
Per the contract, Science Applications will provide engineering services to the Polymers and Undersea Sensors Branch at the Naval Surface Warfare Center (“NSWC”), Crane Division.
Moreover, the company will offer R&D services, rapid prototype development and test and evaluation, among other services.
The services are based on the Product Support Center services model that Science Applications co-developed with NSWC Crane, with which it has a 30-year partnership. The model includes life cycle support to systems and platforms with solution analysis, system engineering and integration, and sustainment.
This task order announcement follows another Seaport-e task order worth $37 million, which was awarded to Science Applications a few days ago to provide its mission support services to the NSWC, Panama City.
Contract Wins Boost Growth
Science Applications is perennially benefiting from back-to-back contract wins. The government’s inclination to adopt technologies is a positive for the company. In the third quarter of fiscal 2019 it recorded $10.4 billion total backlog.
Furthermore, having the government as a big client lends stability to the business and moderates fluctuation in revenues. Although the government generally has a lengthy approval process, the project earns money for a number of years after it is approved.
Moreover, government contracts improve the visibility of future revenue streams. Science Applications has been doing very well with a record level of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction.
The company continues to execute its strategy of winning high-value contracts, delivering excellence to customers and deploying capital for growth. Its robust business model is expected to help it grow further.
Prospects Bright Despite Competition
Competition from CACI International CACI in the federal marketplace remains steady. During its last reported quarter, awards bagged by CACI included a five-year, $73 million contract with the Naval Surface Warfare Center. Its acquisition of the Systems Engineering and Acquisition Support Services Business Unit led the company to secure this award.
Nonetheless, Science Application’s recent buyout of government IT service provider Engility is expected to boost its growth in key markets and enhance its competitive position. This is because Engility provides skilled personnel to the U.S. departments of defense, homeland security and justice. Notably, Engility was the buyout target of five big companies in the past, including CACI, which was apparently the runner up to Science Applications. This makes us optimistic about the company’s growth prospects.
Science Applications currently carries a Zacks Rank #1 (Strong Buy).
A couple of other top-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. FTNT and Synopsys, Inc. SNPS, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Fortinet and Synopsys is projected to be 16.75% and 10%, respectively.
https://finance.yahoo.com/news/science-applications-secures-57m-contract-132001929.html
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SAIC Awarded $57 Million Seaport-e Task Order
RESTON, Va.--(BUSINESS WIRE)--
Science Applications International Corp. (SAIC) won a $57 million Seaport-e task order to provide engineering support services to the Polymers and Undersea Sensors Branch at the Naval Surface Warfare Center, Crane Division.
“This win not only continues the strong partnership we’ve had for 30 years with NSWC Crane,” said Jim Scanlon, executive vice president and general manager of SAIC’s Defense Systems customer group, “but it is also an affirmation of the Product Support Center services model we’ve developed with them.”
The Product Support Center services model provides ‘cradle to grave’ life cycle support to systems and platforms and includes solution analysis, system engineering and integration, and sustainment. It leverages proven, repeatable processes that deliver needed capabilities faster and more cost-effectively. The model can be deployed as a comprehensive, tailored package or via various customer-defined modules.
On this contract, SAIC will also deliver research and development services, rapid prototype development, test and evaluation and depot overhaul and repair for various sensors, underwater cables and specialty molded elastomer products throughout the Fleet. The task order has a one-year base period of performance with four additional option years.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190314005632/en/
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SAIC Announces CEO Transition
[Business Wire]
Business Wire•March 11, 2019
SAIC Announces CEO Transition
SAIC COO Nazzic Keene and CEO Tony Moraco (Photo: Business Wire) Multimedia Gallery URL
RESTON, Va.--(BUSINESS WIRE)--
Tony Moraco to Retire as SAIC’S Chief Executive Officer, Board of Directors Elects Nazzic S. Keene as Successor
Science Applications International Corp. (SAIC) announced today that Tony Moraco will retire as chief executive officer effective July 31, 2019, and that its Board of Directors has elected Nazzic S. Keene, currently the corporation’s chief operating officer, to succeed him.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190311005843/en/
“I am extremely proud of how SAIC has evolved as a leading technology integrator with strong financial performance, led by an excellent leadership team, and I’m very confident that SAIC will deliver sustained profitable growth into the future,” said Moraco. “I am also excited that Nazzic will become our company’s next CEO. She has an exceptional track-record leading the company’s operations, building great teams, and growing business, most recently as the lead architect of the highly-successful Engility merger and integration. Nazzic is the best person to take the helm, accelerate SAIC’s mission-focused strategy, and continue to deliver outstanding value for our customers, employees, and shareholders.”
“I am humbled and honored by Tony’s and the Board’s confidence to lead this great company. With first-hand knowledge of SAIC’s newly-strengthened scale and breadth of capabilities and our mission-driven Ingenuity 2025 strategy, I am excited about the opportunities for even greater success that are ready to be realized,” said Keene. “Working with SAIC’s incredible leadership team and deep bench of exceptional talent, we are well-positioned to lead the way in integrated technology solutions, own the markets we choose to serve, and make a meaningful difference for all who depend on us.”
In announcing the transition, SAIC Board Chair Donna Morea said, “Because of the importance the Board of Directors places on succession planning and seamless leadership transitions, we are appreciative that Tony chose and groomed a highly-respected, highly-qualified successor. Nazzic has a deep understanding and proven mastery of how technology can be applied to further the critical missions of our government and a clear strategic vision for SAIC’s growth and future success.”
Morea continued, “SAIC, its customers, and its shareholders have benefited greatly from Tony’s leadership, which transformed SAIC from a spin-off to a market leader named by FORTUNE Magazine as one of the World’s Most Admired Companies and positioned the company to be the leading provider of integrated technology solutions. The Board looks forward to working with Nazzic to build on Tony’s legacy of success and take the company to still greater heights.”
Keene, a widely-respected IT industry leader with more than three decades of diversified experience in the information systems and technology services industries, joined SAIC in 2012. Since that time, she has risen through the company’s ranks to lead its daily operations as its chief operating officer and to oversee the merger and integration of Engility, which became a wholly-owned subsidiary of SAIC on Jan. 14, 2019.
Previously Keene was president of the company’s Global Markets & Mission sector and senior vice president for Corporate Strategy and Planning, where she played an instrumental role in the spin-off of SAIC in 2013.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and a number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K and other such filings that SAIC makes with the SEC from time to time, which may be viewed or obtained through the Investor Relations section of our web site at www.saic.com. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190311005843/en/
MULTIMEDIA AVAILABLE:https://www.businesswire.com/news/home/20190311005843/en/
Contact:
SAIC Media Contact:
Lauren Presti
Media Relations
703-676-8982
lauren.a.presti@saic.com
SAIC Investor Relations:
Shane P. Canestra
Director of Investor Relations
703.676.2720
shane.p.canestra@saic.com
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SAIC Makes SXSW Debut and Opens New Office Space in Austin, Texas
Science Applications International Corp. (SAIC) announced today that it has opened a new office in Austin, Texas, and is making its first appearance at South by Southwest® (SXSW).
Increasing its footprint in Austin, one of the nation’s start-up hotspots, aligns with SAIC’s commitment to rapidly deliver emerging technologies to solve our customers’ toughest challenges. Opening a new office in the Capital Factory also puts SAIC close to Army Futures Command, which announced Austin as its headquarters last summer.
“Our customers’ appetite for rapid innovation is growing and the need to deliver innovative solutions faster is critical,” said Jim Scanlon, SAIC executive vice president and general manager of the Defense Systems Group.
Josh Jackson, SAIC executive vice president and general manager of the Solutions & Technology Group, added, “The community at the Capital Factory expands our ecosystem of partners, which includes start-ups and established information technology market leaders. And the proximity to customers in Texas will allow us to rapidly solve problems together.”
SAIC has been supporting the Air Education and Training Command’s Pilot Training Next (PTN) initiative, which is revolutionized pilot training, since early 2018. PTN is conducted at the Armed Forces Reserve Center, also in Austin.
SAIC’s expansion in Austin follows the opening of its own Innovation Factory at its Reston headquarters last year and participation in a new space accelerator in partnership with Techstars and Starburst. All of these initiatives are designed to accelerate innovation.
Capital Factory’s mission is to be the center of gravity for entrepreneurs in Texas and to introduce them to their first investors, employees, mentors, and customers. According to Pitchbook, Capital Factory has been the most active investor in Texas since 2013.
Ingenuity Meets SXSW
As a founding member of Capital Factory’s Defense Innovation Council, SAIC is participating in SXSW for the first time, hosting a brunch to bring members of the defense community together with start-ups. The company is also participating in two panels.
The first, “The Future of AI: Accelerating Innovation,” will be moderated by SAIC Vice President Chitra Sivanandam and features Army Brig. Gen. Matt Easley, director of Army Artificial Intelligence at Army Futures Command, and Air Force Lt. Gen. Steven Kwast, head of Air Education and Training Command.
Amy Benson, SAIC vice president of government affairs and policy, will participate in a second panel, “The ABCs of Security a Government Contract,” featuring Army Lt. Gen. Paul Ostrowski, principal military deputy to the Assistant Secretary of the Army (Acquisition, Logistics and Technology) and director of the Army Acquisition Corps.
All events take place at the Defense Innovation Center, 8th floor, Capital Factory, 701 Brazos St, Austin.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190309005008/en/
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SAIC Wins $37 Million Seaport-e Task Order
RESTON, Va.--(BUSINESS WIRE)--
Science Applications International Corp. (SAIC) won a $37 million Seaport-e task order to provide mission support services to the Naval Surface Warfare Center, Panama City Division.
“We’re proud to expand our current support to NSWC PCD Joint Expeditionary Command and Control program, or JEXC2, on this new task order,” said Jim Scanlon, executive vice president and general manager of SAIC’s Defense Systems customer group, “We help make sure the JEXC2 networks and infrastructure operate at peak performance to give the Warfighter full access to the best available command and control systems.”
The JEXC2 family of systems provide the military with a wide range of technology and communications capabilities. On this contract, SAIC will deliver technical support to fielded military command and control systems. The company will also provide 24/7 help desk support and field service representatives deployed with each system. These representatives will help the JEXC2 end-users with system employment, operations and maintenance. The task order has a five-year period of performance.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190304005206/en/
Contact:
Lauren Presti
703-676-8982
lauren.a.presti@saic.com
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Should You Like Science Applications International Corporation’s (NYSE:SAIC) High Return On Capital Employed?
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Today we’ll evaluate Science Applications International Corporation (NYSE:SAIC) to determine whether it could have potential as an investment idea. To be precise, we’ll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
First up, we’ll look at what ROCE is and how we calculate it. Then we’ll compare its ROCE to similar companies. Then we’ll determine how its current liabilities are affecting its ROCE.
Return On Capital Employed (ROCE): What is it?
ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since ‘No two businesses are exactly alike.’
So, How Do We Calculate ROCE?
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)
Or for Science Applications International:
0.20 = US$269m ÷ (US$2.2b – US$682m) (Based on the trailing twelve months to November 2018.)
Therefore, Science Applications International has an ROCE of 20%.
View our latest analysis for Science Applications International
Does Science Applications International Have A Good ROCE?
ROCE is commonly used for comparing the performance of similar businesses. Using our data, we find that Science Applications International’s ROCE is meaningfully better than the 10% average in the IT industry. I think that’s good to see, since it implies the company is better than other companies at making the most of its capital. Regardless of where Science Applications International sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look.
NYSE:SAIC Past Revenue and Net Income, February 22nd 2019
NYSE:SAIC Past Revenue and Net Income, February 22nd 2019
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. What happens in the future is pretty important for investors, so we have prepared a free report on analyst forecasts for Science Applications International.
How Science Applications International’s Current Liabilities Impact Its ROCE
Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Science Applications International has total assets of US$2.2b and current liabilities of US$682m. As a result, its current liabilities are equal to approximately 31% of its total assets. Science Applications International has a medium level of current liabilities, which would boost the ROCE.
The Bottom Line On Science Applications International’s ROCE
While its ROCE looks good, it’s worth remembering that the current liabilities are making the business look better. Of course you might be able to find a better stock than Science Applications International. So you may wish to see this free collection of other companies that have grown earnings strongly.
https://finance.yahoo.com/news/science-applications-international-corporation-nyse-113521113.html
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News: $SAIC SAIC Named One of the World's Most Admired Companies by FORTUNE
Science Applications International Corp. (NYSE: SAIC) has been named by FORTUNE Magazine as one of the World’s Most Admired Companies. This is the company’s third consecutive year to be recognized within the Information Technology Services category and its fourth mention since ...
Read the whole news https://marketwirenews.com/news-releases/saic-named-one-of-the-world-s-most-admired-companies-by-fortune-7549018.html
Science Applications International Corp -- Moody's withdraws ratings of Engility following acquisition by SAIC
Moody's Investors Service ("Moody's") withdraws all ratings of Engility Corporation ("Engility"), including the B2 corporate family rating and stable outlook following repayment of all rated debt. On January 14, 2019, Science Applications International Corporation ("SAIC") completed its acquisition of Engility. All of Engility's debt has been repaid or will be redeemed.
Continue reading
https://finance.yahoo.com/m/4ca368ee-8b54-3361-82e9-15f5c0b664e1/science-applications.html
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SAIC Named a Forbes Best Employer for Diversity
[Business Wire]
Business Wire•January 23, 2019
RESTON, Va.--(BUSINESS WIRE)--
Science Applications International Corp. (SAIC) announced today that it has been named a Best Employer for Diversity by Forbes. The company has been recognized specifically for its inclusion and diversity program, MOSAIC, which fosters a workplace where all employees feel valued for their unique perspectives, life experiences, values, and skills.
“We are incredibly honored to be recognized by Forbes for our inclusive values, and I am especially proud of our employees for living and demonstrating this commitment daily. Understanding how our similarities and differences impact our interactions and shape our viewpoints is essential for creating an inclusive culture and greatly contributes to our company’s performance,” said Chief Operating Officer Nazzic Keene, who sponsors the Women’s Business Resource Group and serves on the Inclusion & Diversity council. “For SAIC, welcoming everyone is our top priority and strengthens our company from within.”
As part of SAIC’s commitment to diversity, the company also supports four interest-based business resource groups (BRGs). Learn more about Mosaic here.
Forbes partnered with market research company Statista to create our second annual ranking of America’s best employers for diversity. The list was compiled by surveying 50,000 Americans working for businesses with at least 1,000 employees.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Certain statements in this announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and a number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K and other such filings that SAIC makes with the SEC from time to time, which may be viewed or obtained through the Investor Relations section of our web site at www.saic.com. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190123005641/en/
Contact:
SAIC Media Contact:
Lauren Presti
703-676-8982
lauren.a.presti@saic.com
https://finance.yahoo.com/news/saic-named-forbes-best-employer-211500921.html
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Is Science Applications International Corporation (NYSE:SAIC) Potentially Underrated?
Science Applications International Corporation (NYSE:SAIC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SAIC, it is a company with a an impressive track record of performance, trading at a great value. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Science Applications International here.
Good value with proven track record
SAIC’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if SAIC’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the it industry, SAIC is also trading below its peers, relative to earnings generated. This bolsters the proposition that SAIC’s price is currently discounted.
Next Steps:
For Science Applications International, I’ve put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SAIC’s future growth? Take a look at our free research report of analyst consensus for SAIC’s outlook.
Financial Health: Are SAIC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAIC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
https://www.yahoo.com/finance/news/science-applications-international-corporation-nyse-141512530.html
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SAIC Completes Acquisition of Engility Holdings, Inc.
RESTON, Va. & CHANTILLY, Va.--(BUSINESS WIRE)--
Science Applications International Corp. (SAIC) today announced the successful completion of its merger with Engility Holdings, Inc. (EGL). The merger was previously approved by SAIC and Engility stockholders at special meetings held on Jan. 11, 2019. Under the terms of the merger agreement, Engility became a wholly-owned subsidiary of SAIC.
The combined company will retain the SAIC name and continue to be headquartered in Reston, Virginia with Tony Moraco as CEO.
“With the acquisition of Engility, we are now a team of 23,000—driven by mission, united by purpose and inspired by opportunity,” said Moraco. “Add to that five consecutive quarters of organic revenue growth for SAIC and the trend is clear—we’re thriving. We are now a bigger, stronger company executing our long-term strategic plan, dedicated to exceeding customer expectations and driving shareholder value.”
Each eligible share of Engility common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 0.450 of a share of SAIC common stock, with cash paid in lieu of any fractional shares. As a result of the merger, Engility’s common stock will no longer be listed for trading on the New York Stock Exchange and Engility will no longer have reporting obligations under the Securities Exchange Act of 1934.
About SAIC
SAIC is a premier technology integrator solving our nation’s most complex modernization and readiness challenges across the defense, space, federal civilian, and intelligence markets. Our robust portfolio of offerings includes high-end solutions in systems engineering and integration; enterprise IT, including cloud services; cyber; software; advanced analytics and simulation; and training. With an intimate understanding of our customers’ challenges and deep expertise in existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to rapidly deliver innovative, effective, and efficient solutions.
We are a team of 23,000 strong driven by mission, united purpose, and inspired by opportunity. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $6.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190114005798/en/
Contact:
SAIC Media Contact:
Lauren Presti
703.676.8982
lauren.a.presti@saic.com
SAIC Investor Contact:
Shane Canestra
703.676.2720
shane.p.canestra@saic.com
https://finance.yahoo.com/news/saic-completes-acquisition-engility-holdings-213000278.html
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Science Applications-Engility Merger Gets Shareholders' Nod
Science Applications International Corporation SAIC recently announced that it is on track to create one of the largest government-IT companies, as its buyout of Engility EGL has been approved by shareholders of both the companies.
More than 98% shareholders of Science Applications and 99% of Engility voted in favor of the $2.5 billion merger. The transaction is expected to be completed within the next few business days.
The intent to acquire Engility was announced by Science Applications in September last year.
The deal will lead to $6.5 billion in revenues, placing Science Applications second to Leidos Holdings LDOS, which had created $10.1 billion in annual sales with its acquisition of Lockheed Martin’s services unit.
Science Applications also has execution plans in place to achieve $75 million in annual cost synergies as a result of the combination.
Engility was the buyout target of five big companies in the past, including CACI International CACI, which was apparently the runner up to Science Applications.
What it Means for Science Applications
At the end of June last year, the U.S. Senate approved the fiscal 2019 defense budget, reflecting 5% real growth from the fiscal 2018 budget. Such increased defense spending under the Trump administration and the Republican-led Congress has lately prompted U.S. defense contractors to expand their product portfolio, which, in turn, is driving companies like SAIC to pursue mergers.
Post acquisition, Science Applications is anticipated to have a stronger presence in the space and intelligence markets, and strength of 6000 cleared workers. It is also expected to produce an estimated $400 million of free cash flow in one year. With such an addition, the company’s combined workforce can speed up operations to modernize their information systems and serve a broader set of customers.
Furthermore, as Engility provides skilled personnel to the U.S. departments of defense, homeland security and justice, the acquisition is likely to speed up Science Applications’ growth in key markets, enhance its competitive position and provide significant financial benefits.
Moreover, the company expects to generate about 55% of total sales from the Pentagon and an additional 16% from the intelligence community. Management expects the combined companies' adjusted EBITDA margin to increase to almost 9% compared with Science Applications' current figure of 7%.
Management is also optimistic about its long-term strategy called Ingenuity 2025, which it expects to accelerate with the acquisition of Engility.
Science Applications currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
https://finance.yahoo.com/news/science-applications-engility-merger-gets-144002100.html
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SAIC, Engility stockholders vote to approve merger
SAIC COO Nazzic Keene says the complex corporate integration work undertaken since the deal was announced in September is complete and the combined company will be “in the market” the first day after the transaction’s close.
Science Applications International Corp. and Engility Holdings Inc. said Friday that shareholders overwhelmingly approved SAIC’s $2.5 billion all-stock deal to acquire Engility and create one of the largest government technology integrators in the market.
More that 98 percent of the shares voting at Reston-based SAIC’s meeting of stockholders voted in favor the union, while 99 percent of Engility stockholders signed off on the deal.
The transaction is expected to close in the next few business days. Shareholders in Chantilly-based Engility (NYSE: EGL) will have the right to receive 0.450 shares of SAIC (NSYE: SAIC) common stock for each share of Engility common stock, with cash paid in lieu of fractional shares.
SAIC executives as well as Engility CEO Lynn Dugle traveled to New York this week to talk up the deal with Wall Street analysts and investors. CEO Tony Moraco emphasized how the deal strengthens SAIC’s position in the space and intelligence markets and boosts its cleared workforce to 6,000. COO Nazzic Keene said the complex corporate integration work undertaken since the deal was announced in September was complete and the combined company would be “in the market” the first day after the transaction’s close.
The deal creates the second-largest government IT company in the market, with $6.5 billion in revenue, trailing only Reston-based Leidos Holdings (NYSE: LDOS), with $10.1 billion in annual sales. SAIC’s enterprise IT and logistics work and Engility’s space and intelligence contracts fit together nicely in ways that will enable the combined company to take a unique set of capabilities to the market, executives and industry analysts say.
Engility had been bandied about for some time locally as a possible acquisition target and five buyers were in the mix for the company before SAIC won out.
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What the shutdown is costing one contractor — and how it may affect recruiting
For companies like SAIC, the advantage of scale — through the diversity of the work it does and the types of benefits it can offer to cover forced leave — is something that can help it attract talent in the midst of a government shutdown, CEO Tony Moraco said.
For companies like SAIC, the advantage of scale — through the diversity of the work it does and the types of benefits it can offer to cover forced leave — is something that can help it attract talent in the midst of a government shutdown, CEO Tony Moraco said.
Executives with Science Applications International Corp. trekked to New York this week to talk up its pending $2.5 billion acquisition of Engility Holdings to Wall Street, and not surprisingly, the government shutdown has come up.
Reston-based SAIC (NYSE: SAIC) revealed the now 18-day shutdown — four days away from being the longest on record — has cost it $10 million per week in revenue so far and the government is $40 million to $50 million behind on payments to the company.
But part of the conversation during its investor day centered on talent and the competition to attract and retain people with the technology skills that commercial companies also covet, especially as web giant Amazon.com Inc. (NASDAQ: AMZN) plans to bring part of its HQ2 to the region. When asked specifically about the effects of the government shutdown on those efforts, SAIC CEO Tony Moraco said Tuesday that while the devotion to mission is the ultimate recruiting tool, he believes government dysfunction might actually play to SAIC’s favor.
As government agencies bear the bigger brunt of the labor impact, civil servants may get turned off more and more by the prospect of working for Uncle Sam. And that could only ratchet up the dependence on contractors to cover that strain on tech resources, he said.
For massive companies like SAIC, the advantage of scale — through the diversity of the work it does and the types of benefits it can offer to cover forced leave — is also something that can help it attract talent.
“I would not be surprised if this quarter, part of our recruiting theme is we’re a large company. If you’re going to operate in this space being with SAIC, we will cover such anomalies that exist,” Moraco said. “Whereas some of the small businesses people may work for actually struggle to meet payroll if they can’t get a bill through on a NASA account or FAA account.”
SAIC still expects its deal to acquire Engility (NYSE: EGL) to close before the end of the month.
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SAIC (SAIC) Down 1.5% Since Last Earnings Report: Can It Rebound?
https://www.yahoo.com/finance/news/saic-saic-down-1-5-143002379.html
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Is Science Applications International Corporation’s (NYSE:SAIC) ROE Of 48% Impressive?
https://www.yahoo.com/finance/news/science-applications-international-corporation-nyse-162850298.html
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CORRECTING and REPLACING SAIC Declares Quarterly Cash Dividend
[Business Wire]
Business Wire•December 12, 2018
RESTON, Va.--(BUSINESS WIRE)--
First paragraph, second sentence of release should read: payable on January 25, 2019 to stockholders of record on January 11, 2019 (instead of payable on January 25, 2018 to stockholders of record on January 11, 2018).
The corrected release reads:
SAIC DECLARES QUARTERLY CASH DIVIDEND
Science Applications International Corp. (SAIC), announced today that its Board of Directors has authorized and declared a regular quarterly cash dividend of $0.31 per share. The cash dividend is payable on January 25, 2019 to stockholders of record on January 11, 2019.
About SAIC
SAIC is a premier technology integrator providing full life cycle services and solutions in the technical, engineering, intelligence, and enterprise information technology markets. SAIC is Redefining Ingenuity through its deep customer and domain knowledge to enable the delivery of systems engineering and integration offerings for large, complex projects. SAIC’s more than 15,000 employees are driven by integrity and mission focus to serve customers in the U.S. federal government. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $4.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Certain statements in this announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and a number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K and other such filings that SAIC makes with the SEC from time to time, which may be viewed or obtained through the Investor Relations section of our web site at www.saic.com. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181212005207/en/
Contact:
SAIC Media:
Lauren Presti
703.676.8982
lauren.a.presti@saic.com
https://finance.yahoo.com/news/saic-declares-quarterly-cash-dividend-121500371.html
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Science Applications (SAIC) Jumps: Stock Rises 6.9%
Science Applications International Corporation SAIC was a big mover last session, as the company saw its shares rise nearly 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, which remained volatile and traded within the range of $64.78 –$70.51 in the past one-month time frame, witnessed a sharp increase on Friday.
The move came after the company reported better-than-expected third-quarter fiscal 2019 (ended Nov 2, 2018) results.
The company has seen three negative estimate revisions in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.
Science Applications currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
Science Applications International Corporation Price
Science Applications International Corporation Price | Science Applications International Corporation Quote
A better-ranked stock in the Computers – IT Services is Dell Technologies Inc. DVMT, which currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Is SAIC going up? Or down? Predict to see what others think: Up or Down
https://finance.yahoo.com/news/science-applications-saic-jumps-stock-133901660.html
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See what the IHS Markit Score report has to say about Science Applications International Corp.
https://finance.yahoo.com/news/edited-transcript-saic-earnings-conference-031838244.html
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SAIC: Fiscal 3Q Earnings Snapshot
[Associated Press]
Associated Press•December 7, 2018
RESTON, Va. (AP) _ Science Applications International Corp. (SAIC) on Thursday reported fiscal third-quarter profit of $48 million.
On a per-share basis, the Reston, Virginia-based company said it had net income of $1.11. Earnings, adjusted for costs related to mergers and acquisitions, came to $1.35 per share.
The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.14 per share.
The information technology company posted revenue of $1.18 billion in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $1.16 billion.
SAIC shares have decreased 15 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $64.96, a decline of 11 percent in the last 12 months.
https://finance.yahoo.com/news/saic-fiscal-3q-earnings-snapshot-211531024.html
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SAIC (SAIC) Tops Q3 Earnings and Revenue Estimates
SAIC (SAIC) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 18.42%. A quarter ago, it was expected that this information technology company would post earnings of $0.98 per share when it actually produced earnings of $1.13, delivering a surprise of 15.31%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
SAIC, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.18 billion for the quarter ended October 2018, surpassing the Zacks Consensus Estimate by 1.34%. This compares to year-ago revenues of $1.15 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SAIC shares have lost about 15.4% since the beginning of the year versus the S&P 500's gain of 1%.
What's Next for SAIC?
While SAIC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SAIC was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $1.13 billion in revenues for the coming quarter and $4.51 on $4.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
https://www.yahoo.com/finance/news/saic-saic-tops-q3-earnings-222010399.html
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SAIC (SAIC) Reports Next Week: Wall Street Expects Earnings Growth
The market expects SAIC (SAIC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on December 6. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This information technology company is expected to post quarterly earnings of $1.14 per share in its upcoming report, which represents a year-over-year change of +17.5%.
Revenues are expected to be $1.16 billion, up 1.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for SAIC?
For SAIC, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.44%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that SAIC will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that SAIC would post earnings of $0.98 per share when it actually produced earnings of $1.13, delivering a surprise of +15.31%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SAIC appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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Defense Logistics Agency Awards SAIC with Global Tire Program
RESTON, Va.--(BUSINESS WIRE)--
The Defense Logistics Agency awarded Science Applications International Corp. (SAIC) with a $900 million firm-fixed-price requirements contract to continue to act as lead supply chain manager and integrator for a Defense Logistics Agency tire delivery program. The contract has a five-year base period of performance with two, two-year option periods, plus four two-month option periods. If all options are exercised, the contract could be worth potentially $1.7 billion. Work will be performed in Fairfield, New Jersey, Ft. Worth, Texas, and other areas outside the continental United States.
“SAIC is very proud to continue as DLA’s Supply Chain Alliance partner for military tires. This is a third-generation program that will now include Navy Aviation tires along with U.S. Air Force and Army fleets,” said Jim Scanlon, SAIC senior vice president and general manager of the Defense Systems Customer Group. “As on the current contract (TSI), we are committed to meeting DLA’s readiness goals with premium on-time delivery performance.”
As part of the tires program, SAIC has delivered more than 1.5 million tires at an outstanding 97 percent fill-rate level. Customers using the Global Tire Program integrator contract are the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, and foreign military sales. Learn more about how we keep the Department of Defense rolling.
About SAIC
SAIC is a premier technology integrator providing full life cycle services and solutions in the technical, engineering, intelligence, and enterprise information technology markets. SAIC is Redefining Ingenuity through its deep customer and domain knowledge to enable the delivery of systems engineering and integration offerings for large, complex projects. SAIC’s more than 15,000 employees are driven by integrity and mission focus to serve customers in the U.S. federal government. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $4.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Certain statements in this announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and a number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K and other such filings that SAIC makes with the SEC from time to time, which may be viewed or obtained through the Investor Relations section of our web site at www.saic.com. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181204005499/en/
Contact:
SAIC Media Contact:
Lauren Presti
703.676.8982
lauren.a.presti@saic.com
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Science Applications (SAIC) Q3 Earnings: What's in Store?
Science Applications International Corporation SAIC is set to report third-quarter fiscal 2019 earnings on Dec 6.
Science Applications’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 20.9%. In the last reported quarter, the company delivered a positive earnings surprise of 15.3%.For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at $1.14, reflecting 17.5% improvement year over year. For revenues, the consensus estimate stands at $1.16 billion, indicating 1.4% increase year over year.Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Science Applications is perennially benefiting from back-to-back contract wins. The government’s inclination to adopt technologies that will reduce costs and improve efficiency of the system is a positive for the company.We note that the company won major contracts and task orders throughout the fiscal third quarter. This is expected to reflect positively in the top line.Moreover, higher number of orders in its supply chain is a tailwind. Further, the company’s cost restructuring and minimizing activities are likely to continue and take some pressure off the margins in the fiscal third quarter as well.However, Science Applications has to continuously invest in value drivers, which act as a hedge against competition from big players like CACI International CACI, Unisys UIS, Accenture and like. These ongoing investments in differentiating solutions and platform integrations, which are expected to reap long-term benefits, are expected to remain a drag on margins.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Science Applications currently carries a Zacks Rank #3 with an Earnings ESP of +0.44%.Stock With a Favorable Combination
https://www.yahoo.com/finance/news/science-applications-saic-q3-earnings-144402914.html
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Science Applications Int'l Corp (SAIC)................Well a "Ceasefire" deal of sorts has been reached with Chine. This should chime good for stock in the coming week(s)
U.S., China declare 90-day halt to new tariffs, White House says
https://www.yahoo.com/finance/news/u-china-declare-90-day-halt-tariffs-white-023232628--finance.html
As envisioned by this articial.............
Trump-Xi trade talks could spark 'explosion' higher for stocks like Apple – or lead to a bear market
https://finance.yahoo.com/m/d1939376-7725-3ae2-9495-027aa9ecb9d6/trump-xi-trade-talks-could.html
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SAIC (SAIC) Reports Next Week: Wall Street Expects Earnings Growth
The market expects SAIC (SAIC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2018. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on December 6. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This information technology company is expected to post quarterly earnings of $1.14 per share in its upcoming report, which represents a year-over-year change of +17.5%.
Revenues are expected to be $1.16 billion, up 1.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is subject to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for SAIC?
For SAIC, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.44%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that SAIC will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that SAIC would post earnings of $0.98 per share when it actually produced earnings of $1.13, delivering a surprise of +15.31%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SAIC appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
https://finance.yahoo.com/news/factors-likely-influence-guidewires-gwre-150603009.html
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Science Applications International Corp (NYSE:SAIC): Are Hedge Funds Right About This Stock?
Asma UL Husna
,Insider Monkey•November 27, 2018
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Science Applications International Corp (NYSE:SAIC).
Science Applications International Corp (NYSE:SAIC) was in 24 hedge funds' portfolios at the end of September. SAIC investors should pay attention to an increase in enthusiasm from smart money in recent months, as there were 17 hedge funds in our database with SAIC positions at the end of the previous quarter. Still, with all this enthusiasm Science Applications International Corp didn't attract many of the wealthiest hedge fund managers (to see which stocks did take a look at the list of 30 most popular stocks among hedge funds in Q3 of 2018). In any case, to determine whether you should consider this stock for your portfolio we need more data, hence we will carefully analyze it further in this article.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 17.4% year to date and outperformed the market by more than 14 percentage points this year. This strategy also outperformed the market by 3 percentage points in the fourth quarter despite the market volatility (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Joe Huber - Huber Capital Management
Joe Huber - Huber Capital Management
While collecting more data about Science Applications International Corp (NYSE:SAIC), we stumbled upon Horizon Kinetics' 3rd Quarter Commentary, in which this employee owned investment manager talks about this company and recent changes of its business.
"As to SAIC, very much like CACI, 62% of its revenues are from the Department of Defense, and over a third from other federal government agencies. For a flavor of the types of new or expanded programs SAIC is engaged in, it was recently awarded $1.4 billion for the Army’s Software Engineering Directorate, a $621 million contract for network and telecommunications support for the U.S. Central Command, and a $620 million engineering contract with NASA, for which SAIC is the leading provider of IT services. This is a company with $4.4 billion of sales for the year ended February 2018. Its backlog in February was 28% higher than in 2017.
SAIC has a similar valuation to CACI, based on last year’s results. However, on September 10th, the company announced that it would acquire a competitor, Engility, for $2.5 billion. This is an all-stock transaction. So figures will change. The company makes reference to the various cost savings and operational and competitive benefits that will result. Of course, this is what companies say. Time will tell. The acquisition will, though, give SAIC substantially more business with NASA and space, and our president has stated that the U.S. should build a Space Force in addition to the Air Force."
Now, it's time to check out the fresh hedge fund action regarding Science Applications International Corp (NYSE:SAIC).
How have hedgies been trading Science Applications International Corp (NYSE:SAIC)?
At Q3's end, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 41% from the previous quarter. On the other hand, there were a total of 14 hedge funds with a bullish position in SAIC at the beginning of this year. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
SAIC_nov2018
SAIC_nov2018
The largest stake in Science Applications International Corp (NYSE:SAIC) was held by AQR Capital Management, which reported holding $57.9 million worth of stock at the end of September. It was followed by Roystone Capital Partners with a $27.8 million position. Other investors bullish on the company included GLG Partners, Huber Capital Management, and Horizon Asset Management.
As industrywide interest jumped, specific money managers were leading the bulls' herd. Roystone Capital Partners, managed by Richard Barrera, assembled the biggest position in Science Applications International Corp (NYSE:SAIC). Roystone Capital Partners had $27.8 million invested in the company at the end of the quarter. Murray Stahl's Horizon Asset Management also initiated a $17.8 million position during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace's Marshall Wace LLP, Steve Pigott's Fort Baker Capital Management, and Matthew Hulsizer's PEAK6 Capital Management.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Science Applications International Corp (NYSE:SAIC) but similarly valued. We will take a look at Telephone & Data Systems, Inc. (NYSE:TDS), Syntel, Inc. (NASDAQ:SYNT), Box, Inc. (NYSE:BOX), and Chimera Investment Corporation (NYSE:CIM). This group of stocks' market valuations are similar to SAIC's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TDS,20,329985,-2 SYNT,18,179383,-2 BOX,26,455631,-1 CIM,12,17383,2 [/table]
As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $186 million in SAIC's case. Box, Inc. (NYSE:BOX) is the most popular stock in this table. On the other hand Chimera Investment Corporation (NYSE:CIM) is the least popular one with only 12 bullish hedge fund positions. Science Applications International Corp (NYSE:SAIC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. In this regard BOX might be a better candidate to consider a long position.
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"PEACE"
SAIC and Engility Announce Date for Special Stockholders Meetings to Approve Merger
[Business Wire]
Business Wire•November 16, 2018
SAIC and Engility Announce Date for Special Stockholders Meetings to Approve Merger
RESTON, Va. & CHANTILLY, Va.--(BUSINESS WIRE)--
Separate Special Meetings to be held in Reston, VA and Chantilly, VA on January 11, 2019
Science Applications International Corporation (“SAIC”) (SAIC) and Engility Holdings, Inc. (“Engility”) (EGL) today announced that each company will hold a special meeting on January 11, 2019 for their respective stockholders to consider and vote on certain proposals related to the proposed acquisition of Engility by SAIC. The joint proxy statement/prospectus describing the proposed transaction is currently expected to be mailed on or about December 4, 2018 to SAIC and Engility stockholders of record as of November 29, 2018.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181115006033/en/
The SAIC stockholder meeting will be held at 9:00 a.m. EST at SAIC’s Corporate Headquarters located at 12010 Sunset Hills Road, Reston, Virginia, 20190.
Engility’s stockholder meeting will be held at 9:00 a.m. EST at Engility Corporate Headquarters located at 4803 Stonecroft Boulevard, Chantilly, Virginia, 20151.
As previously announced, on September 9, 2018, SAIC and Engility have agreed to combine in an all-stock transaction to create the second largest independent technology integrator in government services. Under the terms of the proposed transaction, Engility stockholders will be entitled to receive a fixed exchange ratio of 0.450 shares of SAIC common stock for each share of Engility common stock. Upon completion, it is estimated that SAIC stockholders will own approximately 72% and Engility stockholders will own approximately 28% of the combined company on a pro-forma, fully diluted basis.
The transaction remains subject to customary conditions, including approval by SAIC’s and Engility’s stockholders. The proposed transaction is expected to be completed shortly after the stockholders of both companies approve the merger.
About SAIC
SAIC (SAIC) is a technology integrator, primarily supporting the government services market. SAIC provides technology and engineering solutions, specializing in information technology, platform integration, training and simulation, intelligence, and mission expertise. For additional information about SAIC, please visit www.saic.com.
About Engility
Engility (EGL), a $2 billion technology leader, has thousands of employees around the world working to make a difference. Our history of delivering results for the defense, federal civilian, intelligence and space industries spans more than 60 years. We provide leading-edge solutions and services on Earth, in space and across cyber by leveraging expertise in systems engineering & integration, high performance computing, cybersecurity, readiness & training, enterprise modernization and mission operations support. To learn more about us, please visit www.engility.com and connect with us on Facebook, LinkedIn and Twitter
No Offer or Solicitation
This communication is for informational purposes only and not intended to and does not constitute an offer to subscribe for, buy or sell, the solicitation of an offer to subscribe for, buy or sell or an invitation to subscribe for, buy or sell any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Additional Information and Where to Find It
In connection with the proposed acquisition of Engility, SAIC filed a preliminary registration statement on Form S-4 with the Securities and Exchange Commission (“SEC”) on October 18, 2018 to register the shares of SAIC common stock to be issued in connection with the proposed transaction. The preliminary registration statement includes a preliminary joint proxy statement/prospectus. The definitive joint proxy statement/prospectus, when available, will be sent to the stockholders of SAIC and Engility seeking their approval of the proposed transaction.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THESE DOCUMENTS DO AND WILL CONTAIN IMPORTANT INFORMATION ABOUT SAIC, ENGILITY, AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain copies of these documents free of charge through the website maintained by the SEC at www.sec.gov or from SAIC at its website, www.saic.com, or from Engility at its website, www.engility.com.
Participants in Solicitation
SAIC, Engility, and their respective directors, executive officers, and other employees may be deemed to be participants in the solicitation of proxies from the stockholders of SAIC and Engility in connection with the proposed transaction. Information about SAIC’s executive officers and directors is set forth in its Annual Report on Form 10- K, which was filed with the SEC on March 29, 2018 and its proxy statement for its 2018 annual meeting of stockholders, which was filed with the SEC on April 25, 2018. Information about Engility’s executive officers and directors is set forth in its Annual Report on Form 10-K, which was filed with the SEC on March 2, 2018, and the proxy statement for its 2018 annual meeting of stockholders, which was filed with the SEC on April 13, 2018.
Investors may obtain more detailed information regarding the direct and indirect interests of SAIC, Engility, and their respective executive officers and directors in the transaction by reading the registration statement on Form S-4, which contains the preliminary joint proxy statement/prospectus statement describing the proposed transaction, filed by SAIC with the SEC on October 18, 2018, and the definitive joint proxy statement/prospectus regarding the transaction, which will be filed with the SEC.
Forward-Looking Statements
Certain statements in this written communication contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties concerning the proposed transaction between SAIC and Engility, SAIC’s and Engility’s expected financial performance, and SAIC’s and Engility’s strategic and operational plans. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” and similar words or phrases. Forward-looking statements in this written communication include, among others, statements regarding benefits of the proposed acquisition (including anticipated future financial operating performance and results), estimates of future revenues, operating income, earnings, earnings per share, charges, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Actual performance and results may differ materially from the forward-looking statements made in this written communication depending on a variety of factors, including: the possibility that the transaction will not close or that the closing may be delayed; the possibility that SAIC or Engility may be unable to obtain stockholder approval as required for the transaction or that the other conditions to the closing of the transaction may not be satisfied; the risk that Engility will not be integrated successfully into SAIC following the consummation of the proposed transaction and the risk that revenue opportunities, cost savings, synergies and other anticipated benefits from the acquisition may not be fully realized or may take longer to realize than expected, diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations resulting from the acquisition, difficulties in entering markets in which we have previously had limited direct prior experience, the potential loss of customers and other business partners following announcement of the acquisition, our ability to obtain financing on anticipated terms, compliance with new bank financial and other covenants, assumption of the known and unknown liabilities of the acquired company, recordation of goodwill and nonamortizable intangible assets subject to regular impairment testing and potential impairment charges, incurrence of amortization expenses related to certain intangible assets, assumption that we will enjoy material future tax benefits acquired in connection with the acquisition, developments in the U.S. government defense and intelligence community budgets, including budget reductions, implementation of spending cuts (sequestration) or changes in budgetary priorities; delays in the U.S. government budget process or approval to raise the U.S. debt ceiling; delays in the U.S. government contract procurement process or the award of contracts; delays or loss of contracts as result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. government and other customers; our ability to attract, train and retain skilled employees, including our management team, and to retain and obtain security clearances for our employees; our ability to accurately estimate costs associated with our firm-fixed-price and other contracts; cybersecurity, data security or other security threats, systems failures or other disruptions of our business; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues, including in relation to the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement; our ability to effectively deploy capital and make investments in our business; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the adequacy of our insurance programs designed to protect us from significant product or other liability claims; our ability to declare future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable laws and contractual agreements; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face.
These are only some of the factors that may affect the forward-looking statements contained in this written communication. You should be aware that new factors may emerge from time to time and it is not possible to identify all such factors, nor can Engility or SAIC predict the impact of each such factor on the proposed transaction or the combined company. For further information concerning risks and uncertainties associated with SAIC’s and Engility’s respective businesses, please refer to the filings on Form 10-K, 10-Q and 8-K that SAIC or Engility make from time to time with the SEC, including the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of SAIC’s and Engility’s Annual Report on Form 10-K which may be viewed or obtained through the Investor Relations section of SAIC’s web site at www.investors.saic.com or Engility’s web site at www.engility.com.
All information in this written communication is as of the date hereof. SAIC and Engility expressly disclaims any duty to update any forward-looking statement provided in this written communication to reflect subsequent events, actual results or changes in SAIC’s or Engility’s expectations. SAIC and Engility also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181115006033/en/
MULTIMEDIA AVAILABLE:https://www.businesswire.com/news/home/20181115006033/en/
Contact:
Investor Relations Contacts:
SAIC, Shane Canestra, (703) 676-2720, Shane.P.Canestra@saic.com
Engility, Dave Spille, (703) 984-6120, Dave.Spille @engility.com
Media Contacts:
SAIC: Lauren Presti, (703) 676-8982, Lauren.A.Presti@saic.com
Engility: Scott Fazekas, (703) 984-5068, Scott.Fazekas@engility.com
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Science Applications International awarded $900 mln defense contract
[Reuters]
Reuters•November 10, 2018
WASHINGTON, Nov 9 (Reuters) - Science Applications International Corp was awarded a five-year, $900 million defense contract on Friday for supply and supply chain management of certain tires for the Army, Navy, Air Force, Marine Corps, Coast Guard and foreign militaries, the Pentagon said. (Reporting by David Alexander; Editing by Chris Reese)
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U.S. Navy Awards SAIC $597 Million Contract
The U.S. Navy awarded Science Applications International Corp. (SAIC) an indefinite-delivery, indefinite-quantity contract for the production and delivery of integrated Command, Control, Communications, Computers, Computers, Intelligence, Surveillance, and Reconnaissance (C5ISR) systems, networks, and support equipment in support of the Space and Naval Warfare Systems Center (SSC) Atlantic. The single-award contract has a five-year period of performance worth approximately $597 million.
The contract has an additional two-year award term that, if earned, would increase its potential value to approximately $861 million. Delivery/Task orders awarded under the contract will include procuring, fabricating, assembling, integrating, testing, inspecting and delivering a highly diverse range of systems that include various complex designs provided by Navy program offices in the form of technical data packages. Systems vary in complexity, but generally include the integration of engineered cable assemblies, mounting kit assemblies, hardware, and software/security applications necessary to provide the Warfighter with the capability to communicate, maintain situational awareness, and achieve information dominance. Work will be performed in Charleston, South Carolina and Norfolk, Virginia.
“We are proud to continue to help SSC Atlantic streamline their system production services and provide warfighters with the latest technology available,” said Jim Scanlon, SAIC senior vice president and general manager of the Defense Systems Customer Group. “For this contract, SAIC enables shared resources across the command, resulting in cost savings; as we provide complex electronic systems to the Navy.”
About SAIC
SAIC is a premier technology integrator providing full life cycle services and solutions in the technical, engineering, intelligence, and enterprise information technology markets. SAIC is Redefining Ingenuity through its deep customer and domain knowledge to enable the delivery of systems engineering and integration offerings for large, complex projects. SAIC’s more than 15,000 employees are driven by integrity and mission focus to serve customers in the U.S. federal government. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $4.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Certain statements in this announcement constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and a number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K and other such filings that SAIC makes with the SEC from time to time, which may be viewed or obtained through the Investor Relations section of our web site at www.saic.com . Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005883/en/
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Science Applications' Winning Streak On, Gets New Contract
Science Applications International Corp. SAIC has been awarded a $77 million fixed-price contract by County of Orange, CA. The deal requires the company to provide its managed IT services to agencies within the county.
This contract marks the expansion of Science Applications’ business association with the County of Orange. As part of this deal, the company will launch an on-premises voice solution. This apart, a Security Operations Center providing cyber vigilance, vulnerability assessment, threat intelligence, among others, will be established.
Science Applications has been doing very well with a record level of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction.
The company has a large pipeline of new projects and continues to win more deals at regular intervals. Notably, as of Aug 3, 2018, its total backlog was $10.5 billion. These back-to-back contract wins are the key catalysts driving success perennially for the company.
Federal Exposure Drives Growth
The company focuses on strengthening existing customer relationships while building newer ones. Higher spending as proposed in the latest federal government budget is anticipated to accelerate the pace of contract awards, which in turn, will be beneficial for Science Applications’ top-line growth.
Notably, in its last reported quarter, the company won several Expand Awards from the U.S. Space Related Activities and the U.S. Navy. It also secured Protect Awards from the The U.S. Army Aviation and Missile Command, The U.S. Army and the General Services Administration, The U.S. Navy Space and Naval Warfare, the General Services Administration and the U.S. Navy. It also received a notable Grow Award from the Navy.
Further, new contracts involving NASA and other government agencies brought in $24 million in its last reported quarter.
A leader in IT outsourcing for the government agencies, Science Applications has an exposure to the rapidly growing Department of Defense (DoD) and Department of Homeland Security budgets.
Its system-integration skills and intelligence expertise consume a significant portion of the funds earmarked for the Department of Homeland Security while creating systems that foster the sharing of critical information among all intelligence agencies. We believe the company is comfortably positioned, given its favored relationship with the DoD.
Science Applications currently carries a Zacks Rank #2 (Buy).
https://finance.yahoo.com/news/science-applications-apos-winning-streak-221510118.html
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5 things to watch from the latest round of government contractor earnings reports
Another earnings season for federal contractors is in the books and during calls with Wall Street analysts executives touched on everything from the federal budget picture to the tight labor market to portfolio shaping to the business impact of tensions with Saudi Arabia.
There were also some calls I couldn’t cover in real time, or threads worth additional pursuit. Here are five worth paying attention to in the weeks and months ahead:
1. Engility Holdings Inc. (NYSE: EGL) CEO Lynn Dugle said her Chantilly company and Reston-based Science Applications International Corp. (NYSE: SAIC) — which is acquiring Engility for $2.5 billion in stock — should have a new org chart, with leadership slots to be filled, hammered out in the next couple of weeks. The integration is going smoothly because both companies are run pretty similarly — same organizational structure, compatible financial, HR and other back-office systems.
“I don't think we will get caught up on people trying to adjust with a new operating model because we have the same one,” she said.
The deal is expected to close by the end of January.
Dugle also touched on how, more than scale, the deal needs to enhance the capabilities of both companies as customer missions grow more and more complex. If you figure that anywhere from 5 percent to 10 percent of government IT services work is currently done by machines, with the rest performed by humans that “dividing line” will need to shift looking a decade out, Dugle said. Machines will need to do more of the work for the U.S. to keep pace and address threats from adversaries that may have three times the number of people that we do.
“So the reason SAIC and Engility are talking about capacity and solutions is that we are going to have to bring more technology and service delivery,” she added, “and that could be AI, it could be just basic tools and automation. But we are going to have to hit that mix and our customers want a deep bench.”
2. ManTech International Corp. (NASDAQ: MANT) has made no secret of its desire to grow through M&A — even as it's constantly mentioned as a prized takeover target — and CEO Kevin Phillips revealed the Herndon company has looked at fewer potential deals this year than the last two years.
“I do think that there are fewer businesses that have been in the market, but some of the larger ones had been, which was taking the headlines,” he said. “That said, because we're fairly focused on what we're looking for in terms of opportunities, we've been aggressive on when we find the right opportunity, but have not been successful. I think it's just because of the overall pricing in the market.”
ManTech will continue to aggressively source deals, Phillips added, but only if pricing and timing work in its favor. The federal budget picture — even with a proposed defense cut in fiscal 2020 — remains favorable because of the areas of emphasis, such as cyber, in the national defense strategy.
3. While much of the buzz in federal contracting typically surrounds things like cyber, space and weapons systems and IT modernization, ICF International Inc. (NASDAQ: ICFI) is seeing a couple of domestic catalysts drive new business: the opioid crisis and disaster recovery work.
Sudhakar Kesavan, CEO of Fairfax-based ICF, told analysts the consulting and tech services company has won new contracts totaling $20 million at the Centers for Disease Control, work supported by opioid funding. ICF is tracking additional opportunities there for next year as it builds on work it does for its largest federal client, the Department of Health and Human Services.
Kesavan also said ICF has secured disaster recovery contracts this year from state and local government clients totaling almost $245 million and should serve as a springboard for future growth next year and beyond. Congress, meanwhile, has appropriated $35 billion under the Community Development Block Grant program to help Puerto Rico, Texas, Florida and the U.S. Virgin Islands respond to damage from storms.
4. Arlington-based CACI International Inc. (NYSE: CACI) continues to think big around its products business, which includes a drone-tracking system called SkyTracker.
COO John Mengucci said the requirements for these types of solutions are growing: Threats evolve and government customers need new capabilities delivered faster than ever before. CACI is focusing its product efforts on the electronic warfare, signals intelligence and cyber markets.
Expect to see the number of products, as well as the earnings and revenue from those products, grow over the next 18 months, he added. McLean-based Booz Allen Hamilton talked up a similar products narrative on its earnings call.
5. Next to ManTech, no company is mentioned to me more often as an acquisition target than KeyW Holding Corp. (NASDAQ: KEYW). The Hanover, Maryland-based company said Tuesday it exceeded its revenue, profitability and awards objectives during the third quarter and paid down $10 million in debt — milestones that could make it an even more attractive M&A target.
The company revised its 2018 revenue guidance upward to $500 million to $515 million and CEO Bill Weber said KeyW is “now a more focused, easy-to-understand business" concentrating on cyber, ISR — intelligence, surveillance and reconnaissance — and analytics.
Defense funding trends — not to mention budget certainty — combined with those three focus areas position the company well for growth in 2019, Weber added.
“The national security mission is not driven by red or blue,” he said. “While the outcome of the elections will certainly play a prominent role in the federal budget discussions next October, we are confident that the agencies and missions that KeyW serves will be funded to meet that demand.”
https://www.bizjournals.com/washington/news/2018/11/06/5-things-to-watch-from-the-latest-round-of.html?ana=yahoo&yptr=yahoo
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Orange County, California Awards SAIC $77 Million IT Services Contract
https://finance.yahoo.com/news/orange-county-california-awards-saic-211500287.html
Business WireNovember 6, 2018
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Should You Investigate Science Applications International Corporation (NYSE:SAIC) At US$70.02?
Simply Wall St.•November 2, 2018
Science Applications International Corporation (NYSE:SAIC), which is in the it business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $93.16 at one point, and dropping to the lows of $67.2. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Science Applications International’s current trading price of $70.02 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Science Applications International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Science Applications International
What’s the opportunity in Science Applications International?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.07% above my intrinsic value, which means if you buy Science Applications International today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $69.28, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Science Applications International’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will Science Applications International generate?
NYSE:SAIC Future Profit November 2nd 18
NYSE:SAIC Future Profit November 2nd 18
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Science Applications International’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? SAIC’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on SAIC, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Science Applications International. You can find everything you need to know about Science Applications International in the latest infographic research report. If you are no longer interested in Science Applications International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
https://finance.yahoo.com/m/d3f2877a-9654-3ae3-b821-76835e9fe9e2/ss_caci-%E2%80%98active-as-we-speak%E2%80%99-in.html
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Tony Moraco went to Silicon Valley. Here’s what he learned, and what government contractors should know.
Silicon Valley is of course synonymous with disruption, though often these days to its detriment what with our data being hacked and our time being sucked and our democracy being imperiled (at least, according to this new alternative history from valley chronicler Wired).
Its disruptive influence on federal contracting is cited more and more these days as government agencies seek to transform what they do and how they do it using digital technologies — everything from as-a-service platforms to sophisticated analytics to futuristic artificial intelligence tools.
At the same time, especially with defense work, the devotion to mission that government contractors prize has clashed with corporate principles of companies such as Google, a conflict that’s exploded into public view.
Tony Moraco, chief executive of Science Applications International Corp. (NYSE: SAIC), was in Silicon Valley last week and has some advice for Greater Washington federal contractors weighing whether these companies — titans and startups alike — are mission friend or business foe.
Embrace them. Partner up. Leverage their innovative talents to better serve customers.
“I think fundamentally they’re accelerators,” he said Thursday at the Morrison & Foerster federal M&A outlook in Tysons, where Moraco shared a stage with PAE Inc. CEO John Heller talking mergers and acquisitions and other market trends. “They don’t want to be direct federal contractors. They can’t tolerate a 24-month sales cycle. It’s just too many variables.”
Moraco told me after the event he was out west on a roadshow talking up SAIC’s $2.5 billion all-stock deal to acquire Chantilly-based Engility Holdings Inc. (NYSE: EGL). He was invited to a dinner with several Silicon Valley executives in attendance, including someone from Apple.
A big takeaway, Moraco said, was that these companies need systems integrators, companies like SAIC and others than can bridge the worlds of Silicon Valley and the nation’s capital. Government agencies are increasingly emphasizing time to market, getting mission capabilities out to the field faster or getting a new IT architecture into place on an accelerated timeline.
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Report: Belgium ready to buy billions worth of F-35s
Lockheed and the Pentagon tout the F-35 as more than a fighter jet — it’s the most advanced fighter aircraft ever built, featuring stealth technology, supersonic speed, powerful sensors, large weapons capacity and the ability to collect, analyze and share data.
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“There’s a lot of drivers to go faster. No one accepts the fact that a five- to 10-year development program is fast,” Moraco said during his Q&A. “So [federal agencies] have actually migrated some of their acquisition strategies … [to] looking at a broad capability set through technology transfer to different markets. Silicon Valley offers technology transfer opportunities for generally mature capabilities that the customer now wants to consume.”
I asked Moraco if the kind of idealism that prompted Google to drop out of the Pentagon’s $10 billion JEDI cloud computing competition was discussed. Is there a fundamental disconnect at play?
“It did come up,” he said. “Most felt it is not a community problem.”
That squares with what Amazon.com Inc. CEO Jeff Bezos said recently about working with the Pentagon specifically. He portrayed the choice two ways — as a patriotic duty as well as a duty to act like the adults in the room. Those remarks contrast starkly with companies walking away from lucrative programs — such as an AI initiative called Project Maven — because their rank and file finds the work distasteful.
SAIC said earlier this week the Engility acquisition’s waiting period under the Hart-Scott-Rodino Antitrust Improvements Act had expired, meeting one of the conditions to closing of the proposed merger. SAIC expects the deal to close by February.
https://www.bizjournals.com/washington/news/2018/10/26/tony-moraco-went-to-silicon-valley-here-s-what-he.html?ana=yahoo&yptr=yahoo
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SAIC and Engility Announce Expiration of HSR Waiting Period
https://finance.yahoo.com/news/saic-engility-announce-expiration-hsr-212000631.html
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5 buyers were in the mix for Engility before SAIC won out
Back in February, the same month Science Applications International Corp. was in the midst of an escalating bidding war to acquire CSRA Inc. — eventually won by General Dynamics Corp. in a government IT services market-shaking deal — the Reston company made overtures to Engility Holdings Inc. about possibly joining forces.
The two entered into a nondisclosure agreement Feb. 26 and had an initial exchange of information, but discussions didn’t move forward enough to talk purchase price. Then, on May 23, Engility (NYSE: EGL) CEO Lynn Dugle briefed her board on the preliminary discussions with SAIC (NYSE: SAIC) and a committee was pulled together to pursue potential M&A opportunities for the Chantilly company.
Before long, Engility itself was being pursued by multiple suitors offering escalating deal terms.
That’s according to a new regulatory filing from SAIC that fleshes out the timeline of its deal to acquire Engility for $2.5 billion in stock and how it came together. The deal, announced Sept. 10, came just a just a few months after news broke that Engility was reportedly being offered for sale.
When the deal closes, expected by Feb. 1, 2019, SAIC shareholders will own roughly 72 percent of the company and Engility (NYSE: EGL) shareholders will have the remaining 28 percent. SAIC CEO Tony Moraco recently told the Washington Business Journal the corporate integration work is progressing nicely, though his company’s stock price was down as much as 15 percent since deal was announced so Moraco was undertaking a charm offensive with Wall Street to explain the deal and why it works.
The union will create a company with 23,000 employees and $6.5 billion in annual revenue, trailing only Reston-based Leidos Holdings Inc.(NYSE: LDOS), at about $10.3 billion or more in revenue, and General Dynamics' (NYSE: GD) information technology business, with $9.9 billion in revenue following its blockbuster deal earlier this year to acquire CSRA Inc.
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Lockheed’s ballistic missile defense system clears another hurdle
Lockheed’s Long Range Discrimination Radar builds on the weapons and technologies that Bethesda defense contracting giant provides for all three segments of the Missile Defense Agency’s layered Ballistic Missile Defense System being developed. That includes the Patriot Advanced Capability-3 missiles and the Terminal High Altitude Area Defense system.
Government & Regulations
Report: Belgium ready to buy billions worth of F-35s
Lockheed and the Pentagon tout the F-35 as more than a fighter jet — it’s the most advanced fighter aircraft ever built, featuring stealth technology, supersonic speed, powerful sensors, large weapons capacity and the ability to collect, analyze and share data.
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The transaction, rumors of which first surfaced in July, is another example of the consolidation gripping Greater Washington’s government contracting sector via seismic M&A activity. Companies are aggressively trying to beef up to put themselves in position to compete on complex, big-ticket contracts at a time of surging budgets for defense, national security and IT modernization.
When word first leaked about Engility being up for sale, CACI International (NYSE: CACI) was also reportedly vying for the company along with SAIC. Beginning in early June, according to SAIC’s regulatory filing, four potential buyers would enter the mix. They were:
Company A, described as as “a publicly-traded engineering, construction and government services firm” — approached Engility about a deal.
Company B, a government services industry firm.
Company C, a construction, engineering and government services firm.
Company D, “a financial sponsor with experience and multiple past and present portfolio companies in the aerospace and defense sector."
Several government contracting market watchers, asked to offer informed speculation on the identity of the potential buyers in return for anonymity, locked in on a small handful of possibilities.
Company B was likely CACI while Company D was probably Veritas Capital but could also be The Carlyle Group (NASDAQ: CG), both private equity firms. Speculation on the identities of the engineering, construction and government services firms that were in the mix — Company A, specifically described as publicly traded, and Company C — centered on a few big names looking to extend their reach into the cyber, space and intelligence markets, capabilities that are in high demand. KBR Inc.(NYSE: KBR), AECOM (NYSE: ACM) and Parsons were seen fitting that bill.
Dugle and Moraco had several discussions over several weeks, Dugle reported back to her board, and financial advisers were retained and four other “strategic partners” — potential buyers — were contacted to explore their interest.
On July 11 Engility retained Weil, Gotshal & Manges LLP as outside legal counsel and met with members of SAIC management in D.C. That same day, Reuters reported Engility was exploring a sale — and its stock jumped more than 10 percent to $31.66 per share.
Company A and Company C dropped out of the running a day later. SAIC made a preliminary offer on July 17 with an offer price of $37.52 per share of Engility stock. And on July 20 Company D entered the fray.
Company B submitted a preliminary all-cash offer July 23 at a range of $37 to $38 per share of Engility’s common stock. Company D submitted a revised proposal on Aug. 8 with a range of $37 to $39 per share of Engility’s common stock. Company B then dropped out Aug. 11, citing organizational conflict-of-interest concerns.
SAIC submitted a revised offer Sept. 4 with an implied offer price of $40.96 and the addition of two board seats to be filled with Engility directors. Company D decided that day not to submit a final bid.
Under the final deal terms, Engility stockholders will receive 0.450 shares of SAIC common stock for each share of Engility stock, based on the SAIC closing price of $89.86 on Sept. 7.
Citigroup Global Markets Inc. will provide SAIC a seven-year secured loan worth $1.05 billion to repay Engility’s existing debt and other fees. Engility stock closed Sept. 7 at $36.21.
Engility will pay SAIC a $50 million termination fee and reimburse $10 million in expenses, under certain conditions, if the deal is called off. SAIC will pay Engility a $100 million termination fee, under certain conditions.
https://www.bizjournals.com/washington/news/2018/10/22/5-buyers-were-in-the-mix-for-engility-before-saic.html?ana=yahoo&yptr=yahoo
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Engility wins Joint Range Extension Tactical Equipment Package contract with $49.5 million ceiling
https://finance.yahoo.com/news/engility-wins-joint-range-extension-120000014.html
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Only 4 Days Left To Cash In On Science Applications International Corporation (NYSE:SAIC) Dividend,
https://finance.yahoo.com/news/only-4-days-left-cash-131419594.html
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Second round of GSA contracts awarded for IT modernization push
https://www.bizjournals.com/washington/news/2018/10/02/second-round-of-gsa-contracts-awarded-for-it.html?ana=yahoo&yptr=yahoo
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Is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC) Outperforming Other Computer and Technology Stocks This Year?
https://finance.yahoo.com/news/science-applications-international-corporation-saic-133001603.html
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