In morning trading on Thursday, the Dow Jones industrials were up 0.45%, the S&P 500 up 0.58% and the Nasdaq up 0.63%.
Before U.S. markets opened on Thursday, Manchester United reported a larger-than-expected loss per share but beat the revenue estimate. The share price rose by 1.25%, but investors’ fortunes rest on a potential sale of the team. Neither of the two leading competitors has reportedly met the current owner’s desired minimum of £6 billion (about $7.4 billion).
The EV charging network operator EVgo posted a loss of $0.06 per share, compared to an expected loss of $0.19. Revenue of $27.3 million easily topped a consensus estimate of $20.13 million. Shares traded up by nearly 27% early Thursday.
After U.S. markets close Thursday, BlackBerry will report quarterly results, while Science Applications International Corp. (NYSE: SAIC) will take its turn in the earnings spotlight first thing Monday morning.
SAIC provides a variety of IT services to a number of federal agencies, including the military, NASA, the State Department and the Department of Homeland Security. According to data compiled by FI-Aeroweb, SAIC was ranked 15th in prime contractor awards for the 2022 federal fiscal year that ended in September 2022. The company’s U.S. government contracts were valued at $5.35 billion, about 72% of SAIC’s total revenue.
Last week, the company announced the sale of its logistics and supply chain management business for about $350 million. SAIC is focusing its growth efforts on enterprise information technology, secure cloud and systems integration, and delivery systems.
There are 11 analyst ratings on SAIC’s stock, and four of those are Buy or Strong Buy. Six brokerages rate the stock at Hold. At a recent share price of around $106.70, the upside potential based on a median price target of $117.50 is 10.1%. At the high target of $141.00, the upside potential is 32.1%.
For the fourth quarter of fiscal 2023, the consensus estimates call for revenue of $1.86 billion, which would be down 2.5% sequentially and by 4.5% year over year. SAIC is expected to post adjusted EPS of $1.65, down 13.0% sequentially but up 10.0% year over year. For the full fiscal year that ended in January, the company is expected to report EPS of $7.88, down 1.2%, on sales of $7.59 billion, up 2.7%.
SAIC stock trades at 14.8 times expected 2023 EPS, 14.3 times estimated 2024 earnings of $7.43, and 13.0 times estimated 2025 earnings of $8.15 per share. The stock’s 52-week trading range is $79.33 to $117.94. SAIC pays an annual dividend of $1.48 (yield of 1.4%). Total shareholder return for the past year was 19.03%.
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