Yahoo Finance Science Applications (SAIC) to Sell Logistics & Supply Chain Unit
Science Applications SAIC recently signed a definitive agreement with Arctic Slope Regional Corporation’s (ASRC) subsidiary, ASRC Federal Holding Company, for selling its logistics and supply chain management business.
The $350 million worth deal is likely to conclude in the first six months of fiscal 2024, subject to customary closing conditions like receipt of required regulatory approvals. As part of the deal, 240 of current SAIC employees will be transitioning to ASRC Federal.
Nazzic Keene, Chief Executive Officer at SAIC stated, "The agreement allows for seamless transition and continued support for the logistics and supply chain management business and their important customer missions, while enabling SAIC to concentrate resources in our Growth & Technology Accelerant areas of focus. These areas include Secure Cloud, Enterprise IT and Systems Integration & Delivery which now account for more than 30% of SAIC revenue."
Currently, Science Applications is focusing on the federal government marketplace and capturing more market share. It intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening the existing customer relationships while building newer ones. Increased federal spending is anticipated to accelerate the pace of contract awards, which, in turn, will be beneficial for SAIC’s top-line growth.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
In January, SAIC launched Tenjin, a centralized data science platform that enables low-code to full-code artificial intelligence and machine-learning development and orchestration. In the same month, it was awarded a $112 million contract to develop Cloud Based Command and Control for the U.S. Air Force Advanced Battle Management System.
Earlier in January, the company received a $349 million contract from the U.S. Navy to provide support for the Afloat and Ashore Tactical Networks. Under the five-year contract, the company will continue to deliver In-Service Engineering Agent functions to the Naval Information Warfare Center Pacific.
In a separate deal, United States Transportation Command selected SAIC to modernize the organization’s IT management systems. Per the contract, the company will also be responsible for infusing the latest innovations into USTRANSCOM’s enterprise IT and introducing IT-as-a-service models.
In December 2022, SAIC secured a blanket purchase agreement from the Transportation Security Administration (TSA) to continue performing the operational testing and evaluation of TSA airport screening equipment and non-screening systems. The contract has an estimated value of $150 million.
In November 2022, SAIC secured a single-award contract worth $757 million from the U.S. Army Enterprise Service Desk to provide software development and management services. In September 2022, it won the Systems and Software Assurance Services 2 contract worth $170 million from the National Aeronautics and Space Administration.
In the third quarter of fiscal 2023, SAIC revenues rose 1% year over year to $1.91 billion. The increase was primarily driven by the ramp-up of new and existing contracts, partially offset by contract completions and lower accelerated amortization on certain off-market liability contracts.
The Zacks Consensus Estimate for Science Applications’ fourth-quarter fiscal 2023 revenues is pegged at $1.85 billion compared with the year-ago quarter’s $1.78 billion.
Zacks Rank & Stocks to Consider
Science Applications currently carries a Zacks Rank #4 (Sell). Shares of SAIC have jumped 8.2% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Airbnb ABNB, Baidu BIDU and Fabrinet FN. While Airbnb sports a Zacks Rank #1 (Strong Buy), Baidu and Fabrinet carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings has been revised northward from a loss of a penny to earnings of 14 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 58 cents to $3.38 in the past 60 days.
ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 30.3% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 23 cents to $7.71 in the past 60 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 7.6% in the past year.
The Zacks Consensus Estimate for Baidu’s first-quarter 2023 earnings has been revised 17 cents northward to $2.60 per share over the past 30 days. For 2023, earnings estimates have declined 0.8% to $11.53 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%. Shares of the company have increased 6% in the past year.
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