Science Applications International Corporation SAIC recently announced that it grabbed a U.S. Navy contract worth $102 million to extend its support for the Navy’s MK 48 Mod 7 Heavyweight Torpedo program. The recently awarded firm-fixed-price and cost-plus-fixed-fee contract is a modification to the previously awarded $1.1 billion torpedo production contract.
Per the deal, the company will produce, assemble, test and deliver MK 48 MOD 7 Torpedo Afterbody Tialcones (AB/TC) and MK29 MOD 0 Warshot Fuel Tanks to the U.S. Navy.
Science Applications is benefiting from the continued flow of high-value contracts. A record level of awards reflects its disciplined business-development actions, consistent operational excellence and high customer satisfaction. As of Feb 3, 2023, the company’s total contract backlog was $23.8 billion.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Science Applications is currently 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 existing customer relationships while building newer ones. Increased federal spending is anticipated to accelerate the pace of contract awards, which will be beneficial for SAIC’s top line.
In January 2023, SAIC received a $349 million contract from the U.S. Navy to support 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.
Earlier in January, the United States Transportation Command (“USTRANSCOM”) selected SAIC to modernize the organization’s IT management systems. Under 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, the company secured a blanket purchase agreement from the Transportation Security Administration (“TSA”) to continue performing operational testing and evaluating TSA airport screening equipment and non-screening systems. The contract has an estimated value of $150 million.
In November 2022, Science Applications secured a single-award contract worth $757 million from the U.S. Army Enterprise Service Desk to provide software development and management services.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #4 (Sell). Shares of SAIC have decreased 2% year to date (YTD).
Some better-ranked stocks in the broader technology sector are Wix.com WIX, Zscaler ZS and Adobe ADBE, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 20.1% YTD.
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Adobe's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.6%. Shares of ADBE have soared 11.8% YTD.
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