Earnings Preview: SAIC, Inc. (SAI)

SAIC, Inc. SAI is currently higher on the session by 2.96%, trading at $15.32. The company is scheduled to report earnings September 1st, after the closing bell. • Estimates The Street is looking for Q2 earnings per share of $0.33 on revenue of $2.85 billion. These estimates have stayed the same over the past 90 days. The Whisper number for SAI is $0.33. • Guidance The Street is looking for Q3 EPS of $0.37 on revenue of $2.95 billion. The full year 2010 estimates are $1.38 per share on revenue of $11.38 billion; FY 2011 is at $1.51 per share on revenues of $11.99 billion. • Technical Picture The near term chart for SAI has been brutal; the stock has sold off from practically the past nine months, nearly unabated. The stock was trading at $19.75 in March. Note that the stock is trading around, not only 52-wek lows, but all0time lows as well. On a monthly basis, $15.50 is first resistance and $16.25 is second resistance. The only support level is near $14.80. • Volatility Both historical volatility and implied volatility have been rallying over the past few months and are now on par with the spike higher it had in mid-May. Currently HI is at 24% and IV is at 29%. The front month $15.00 straddle is trading at 32.85%; the October $15.00 straddle is trading at 27.46% SAIC, Inc. is a provider of scientific, engineering, systems integration and technical services and solutions to all branches of the United States military, agencies of the United States Department of Defense, the intelligence community, the United States Department of Homeland Security and other United States Government civil agencies, state and local government agencies, foreign governments and customers in select commercial markets. Its business is focused on solving issues of national and global importance in the areas of defense, intelligence, homeland security, logistics and product support, energy, environment and health.