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What Awaits Science Applications (SAIC) This Earnings Season?

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Science Applications International Corporation (SAIC - Free Report) is set to report fourth-quarter fiscal 2023 earnings on Apr 3.

Science Applications surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.5%.

For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1.86 billion, indicating a 4.1% improvement from the year-ago quarter’s reported figure. For earnings, the consensus mark stands at $1.63 per share, suggesting growth of 8.7% from the prior-year quarter’s reported number.

Let’s see how things have shaped up for the upcoming announcement.

Factors to Note Ahead of Q4 Results

Science Applications’ fourth-quarter fiscal 2023 results are likely to benefit from the higher demand for its technology solutions due to the ongoing digital transformation wave across the defense, space, intelligence and civilian markets. The company’s capability to sustain its existing contracts, along with the newly awarded ones across the customer portfolio, might have acted as a tailwind.

The strong demand for the company’s IT modernization services, which include advanced analytics, software and app modernization and cloud migration, may have favored the performance in the quarter to be reported.

However, rising component costs, along with increasing labor and logistics expenses, are anticipated to have negatively impacted SAIC’s bottom line in the fourth quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Science Applications this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though Science Applications has an Earnings ESP of +1.92%, it carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Meta Platforms (META - Free Report) , Alphabet (GOOGL - Free Report) and Corning Incorporated (GLW - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

Meta sports a Zacks Rank #1 and has an Earnings ESP of +3.67%. The company is anticipated to report first-quarter 2023 results on Apr 26. META’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 8.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta’s first-quarter earnings is pegged at $1.94 per share, indicating a year-over-year decline of 28.7%. The consensus mark for revenues stands at $27.48 billion, suggesting a year-over-year decrease of 1.5%.

Alphabet is expected to report first-quarter 2023 results on Apr 25, 2023. The company carries a Zacks Rank #3 and has an Earnings ESP of +10.48% at present. Alphabet’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being -8%.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.05 per share, suggesting a decline of 14.6% from the year-ago quarter’s earnings of $1.23. GOOGL’s quarterly revenues are estimated to increase 1.7% year over year to $56.95 billion.

Corning carries a Zacks Rank #3 and has an Earnings ESP of +3.71%. The company is anticipated to report its first-quarter 2023 results on Apr 25. Corning’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 4.7%.

The Zacks Consensus Estimate for Corning’s first-quarter earnings stands at 39 cents per share, implying a decline of 27.8% from the year-ago quarter’s earnings of 54 cents. GLW is estimated to report revenues of $3.33 billion, which suggests a decrease of 11.1% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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