RESTON, Va. – Science Applications (NASDAQ:SAIC) International Corporation (NASDAQ:SAIC), a leading technology integrator, reported fourth-quarter earnings slightly below analyst expectations, causing its shares to slightly retreat by 0.79%.
The company announced Q4 adjusted EPS of $1.43, just a cent short of the $1.44 consensus. However, revenue outperformed expectations, coming in at $1.74 billion against the predicted $1.64 billion.
Despite the earnings miss, SAIC's revenue reflected a robust performance, exceeding analyst estimates and showcasing a 7.7% organic growth compared to the previous year. The company's full fiscal year 2024 revenues stood at $7.44 billion, indicating a 7.4% organic growth. This growth accounts for the impacts of divestitures and an additional five working days in the prior year.
The company's net income for the quarter was reported at $39 million, with adjusted EBITDA reaching $127 million or 7.3% of revenue. For the full fiscal year 2024, SAIC's net income was a substantial $477 million, and adjusted EBITDA was $668 million or 9.0% of revenue. The fourth quarter also saw cash flows from operating activities at $63 million and transaction-adjusted free cash flow at $119 million.
Looking ahead, SAIC has updated its FY25 guidance to reflect higher revenue and free cash flow expectations. For FY2025, the company anticipates adjusted diluted EPS to be between $8.00 and $8.20, aligning with the consensus estimate of $8.12. Revenue forecasts for FY2025 are set at $7.35 billion to $7.5 billion, compared to the consensus estimate of $7.37 billion.
SAIC's CEO, Toni Townes-Whitley, expressed confidence in the company's trajectory, stating, "We delivered strong financial results in the quarter with revenue, earnings per share, and free cash flow ahead of expectations." She added, "As we embark on the next phase of our corporate strategy to become the premier mission integrator in our market, I am confident that the investments we are making in Fiscal Year 2025 will accelerate our ability to drive value for all our stakeholders."
The company's performance is also reflected in its backlog, with an estimated $22.8 billion at the end of the fiscal year, of which $3.5 billion was funded. SAIC continues to secure significant contracts, including a $444 million contract to support the U.S. Space Force's Digital Transformation, Acquisition, Modernization, and Modification initiatives.
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