SAIC shares down on weak 3Q profit

SAIC's 3rd-quarter profit disappoints investors, shares fall

Associated Press

Science Applications International Corp. shares fell Friday after the information technology company reported a disappointing quarterly profit.

The company said Thursday that its net income fell to $22 million, or 44 cents per share, for its fiscal third quarter, down from the $45 million, or 90 cents per share, a year ago. The latest results were short of the 50 cents per share that analysts polled by FactSet expected.

SAIC said the drop was due largely to lower sales volume, separation and restructuring costs and to a minor degree, the government shutdown.

Its revenue fell to $974 million from $1.2 million, excluding revenue from its former parent company.

SAIC completed its split into two separate companies in September. SAIC, based in McLean, Va., handles information technology and other services. The other company, Leidos Holding Inc., focuses on national security, engineering and other work from its Reston, Va., headquarters.

SAIC said that it expects to earn between $2.13 and $2.33 per share for the year on revenue between $3.85 billion and $4.1 billion.

The company also said Friday that Doug Wagoner has been named an SAIC sector president. Wagoner joined SAIC in 2007 and helped lead the team responsible for managing the division of the company. He replaces Deborah Lee James, who was recently confirmed as the new Secretary of the U.S. Air Force.

Shares of SAIC fell $1.05, or 3 percent, to $33.73 in late afternoon trading.

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