SAIC Intrinsic Value – SCIENCE APPLICATIONS INTERNATIONAL Announces FY2024 Q2 Earnings Results for July 31 2023
September 8, 2023
🌥️Earnings Overview
On September 7, 2023, SCIENCE APPLICATIONS INTERNATIONAL ($NYSE:SAIC) announced their Q2 FY2024 earnings results as of July 31, 2023. Revenue totaled USD 1784.0 million, a slight decrease of 2.6% from the same period of the prior year. Net income was a positive USD 247.0 million – a USD 174 million increase from the year before.
Price History
On Thursday, SCIENCE APPLICATIONS INTERNATIONAL (SAI) announced its financial results for the second quarter of fiscal year 2024, which ended on July 31, 2023. The stock opened at $116.3 and closed at $109.9, down 4.9% from the prior closing price of 115.5. This decrease reflects a weak quarter for the company as they reported lower than expected earnings. Their revenue for the quarter was $2.6 billion, a 4% decrease from the same quarter a year ago. The primary factors for this decrease in results were weak sales in their defense and intelligence segments, and higher operating costs. Despite the weaker financials, SAI remains confident in their future prospects. They have also adjusted their outlook for the full year and are predicting an increase in revenue of 3-4%.
Additionally, they are focused on driving efficiencies and reducing costs in order to improve their bottom line. Overall, SAI is hoping to return to consistent profitability in the coming quarters and have taken steps to ensure that their financials remain strong in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SAIC. More…
| Total Revenues | Net Income | Net Margin |
| 7.69k | 499 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SAIC. More…
| Operations | Investing | Financing |
| 505 | 315 | -567 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SAIC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.67k | 3.83k | 34.33 |
Key Ratios Snapshot
Some of the financial key ratios for SAIC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 21.3% | 10.0% |
| FCF Margin | ROE | ROA |
| 6.2% | 27.3% | 8.5% |
Analysis – SAIC Intrinsic Value
At GoodWhale we recently conducted an analysis of SCIENCE APPLICATIONS INTERNATIONAL’s wellbeing. Our proprietary Valuation Line gave us the intrinsic value of SCIENCE APPLICATIONS INTERNATIONAL’s share which came to around $102.5. We suggest investors take this into consideration when considering buying or selling the stock. More…
Peers
Science Applications International Corp (SAIC) is an American technology and engineering company. Founded in 1969, SAIC provides scientific, engineering, and technical services to the US government, as well as commercial and international customers. SAIC has over 40,000 employees and has annual revenue of $4.3 billion. SAIC’s main competitors are Alten, CES Ltd, and Castellum Inc. Alten is a French company that provides engineering and technical consulting services. CES Ltd is a UK-based company that provides engineering, construction, and project management services. Castellum Inc is a US-based engineering and construction company.
– Alten ($LTS:0O1S)
Alten provides engineering and technology consulting services to a range of industries. It has a market cap of 4.1B as of 2022 and a ROE of 15.0%. The company has a strong focus on innovation and sustainability, and has been recognised as a Global Leader in Sustainability by the Dow Jones Sustainability Index. Alten is also a signatory of the United Nations Global Compact, and is committed to aligning its business operations with the UN Sustainable Development Goals.
– CES Ltd ($BSE:512341)
In 2022, the market cap for CES Ltd was 16.02 million. The company had a return on equity of 19.19%. CES Ltd is a company that manufactures electronic products.
Summary
SCIENCE APPLICATIONS INTERNATIONAL reported their FY2024 Q2 earnings on September 7 2023, showing total revenue of USD 1784.0 million, a 2.6% decrease from the same period of the previous year. Net income was USD 247.0 million, an increase of USD 174 million from the same period a year prior. Overall, this results in a mixed outlook for investors; while net income increased significantly, a decrease in total revenue suggests short-term challenges.
In response to the earnings report, the stock price moved down on the same day. Moving forward, investors should monitor the company’s financial performance and management strategies to assess whether SCIENCE APPLICATIONS INTERNATIONAL presents a compelling investing opportunity.
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