SAIC Drops on Q2 Earnings Miss

Shares of SAIC SAI are trading lower in the after-hours following the release of the company's Q2 earnings results. Currently, shares are lower by 6.60%, trading at $14.01; they ended the regular session higher by 1.15%, at $15.00. SAIC reported Q2 EPS of $0.32 on revenues of $2.6 billion; the Street was looking for $0.35 per share on revenues of $2.76 billion. Revenues decreased 5.5% year over year. Internal revenue contracted 7% during the quarter. "Our overall results for the quarter were disappointing," said Walt Havenstein, SAIC chief executive officer. "In this challenging government contracting environment, the lack of funding for ongoing programs and for ramping up new work drove a shortfall in revenues and earnings per share. However, we continue to believe there will be areas of growth as evidenced by the encouraging performance in our health, energy and intelligence, surveillance and reconnaissance businesses." 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 the United States Government civil agencies, state and local government agencies, foreign governments and customers in select commercial markets.