SAIC Registers 10% Topline Growth In Q4 Aided By Ramp-Up On Contracts

Science Applications International Corp (NYSE: SAIC) reported a 10% revenue growth year-on-year in the fourth quarter of FY23 to $1.97 billion, beating the consensus of $1.86 billion.
Five additional working days in the current year period and a ramp-up on new and existing contracts drove the revenue numbers.
Adjusted EPS of $2.04 beat the consensus of $1.66.
Adjusted operating margin expanded by 80 bps to 6.7% due to improved profitability across its contract portfolio.
Adjusted EBITDA margin improved by 50 bps to 8.7%.
SAIC generated $148 million in free cash flow and held $109 million in cash and equivalents.
Net bookings for the quarter were $1.3 billion, reflecting a book-to-bill ratio of 0.7.
Dividend: The company's cash dividend of $0.37 per share will be payable on April 28 to stockholders of record on April 14.
FY24 Outlook: SAIC cut revenue guidance to $7.05 billion - $7.20 billion, down from the prior $7.60 billion - $7.80 billion, below the consensus of $7.72 billion.
SAIC provided adjusted EPS guidance of $6.80 - $7.00, below the consensus of $7.48.
The updated guidance reflects Logistics & Supply Chain Management (L&SCM) divestiture, deconsolidation of Forfeiture Support Associates joint venture, and inclusion of impact from Section 174 of the Internal Revenue Code on cash tax payments.
Price Action: SAIC shares traded higher by 1.43% at $109.00 premarket on the last check Monday.