SAIC Beats Q3 Estimates, Raises FY22 Adjusted EPS Outlook

Science Applications International Corp SAIC reported third-quarter FY22 revenue growth of 4% year-over-year to $1.89 billion and +2.1% on an organic basis, beating the consensus of $1.88 billion.
Adjusted EPS improved to $1.85 from $1.62 last year, beating the consensus of $1.50.
Adjusted operating income increased by 10% Y/Y to $126 million, and margin expanded by 30 bps to 6.6%.
Adjusted EBITDA was $171 million, an increase of 4% Y/Y, and the margin was flat at 9%.
SAIC generated cash from operating activities year-to-date of $415 million, compared to $702 million a year ago. Free cash flow of $373 million.
Net bookings for the quarter were ~$1.4 billion, reflecting a book-to-bill ratio of 0.7. SAIC's estimated backlog was ~$24 billion at the end of the quarter.
The company's cash dividend of $0.37 per share is payable on January 28, 2022, to stockholders of record on January 14, 2022.
FY22 Outlook: SAIC expects revenue of $7.35 billion-$7.40 billion (prior view $7.30 billion - $7.40 billion), versus consensus of $7.39 billion.
It expects an Adjusted EPS of $6.75-$6.95 (prior expectation of $6.50-$6.70), versus the consensus of $6.78.
Price Action: SAIC shares closed higher by 0.26% at $85.56 on Friday.