Why Science Applications Shares Are Surging Monday Morning

Science Applications International Corp (NYSE: SAIC) reported a 2% revenue growth Y/Y in Q1 FY24 to $2.03 billion, beating the consensus of $1.96 billion.
Revenues benefited from the ramp-up of existing and new contracts.
Adjusted EPS of $2.14 beat the consensus of $1.77.
Adjusted operating margin expanded by 80 bps to 7.5% led by lower indirect expenses, acquisition and integration costs, and gain from the deconsolidation of FSA.
Adjusted EBITDA margin improved by 60 bps to 9.3%.
SAIC generated $76 million in free cash flow and held $422 million in cash and cash equivalents.
Net bookings for the quarter were $2.1 billion, reflecting a book-to-bill ratio of 1.1.
The estimated backlog was around $23.8 billion at the end of the quarter.
SAIC received a refundable cash deposit of $355 million for the expected sale of its logistics and supply chain management (L&SCM) business, which closed post-quarter end.
The company bought back $70 million worth of shares and paid $21 million in cash dividends in the quarter.
Dividend: The company's cash dividend of $0.37 per share will be payable on July 28 to stockholders of record on July 14, 2023.
FY24 Outlook: SAIC raised revenue guidance to $7.125 billion - $7.225 billion (from the prior $7.05 billion - $7.20 billion) vs. the consensus of $7.15 billion.
SAIC increased adjusted EPS guidance to $7.00-$7.20 (from $6.80-$7.00 earlier), above the consensus of $6.96.
Last month, SAIC announced the appointment of Toni Townes-Whitley as the new CEO, following the retirement of Nazzic S. Keene, effective October 2, 2023.
Also Read: SAIC Secures $249M Contract From US Navy
Price Action: SAIC shares are trading higher by 5.35% at $106.88 premarket on the last check Monday.

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