SAIC Grabs $112M Contract to Support Air Force ABMS Program
Science Applications International SAIC recently announced that it has won a contract to support the U.S. Department of Air Force’s (“DAF”) Advanced Battle Management System (ABMS) program.
Under the indefinite-delivery/indefinite-quantity contract, SAIC will develop Cloud Based Command and Control (CBC2) for the DAF’s ABMS program. The contract has an estimated value of $112 million.
SAIC will provide agile development, security and operations and product management services for a set of microservice applications and digital engineering tools. Initially, the company will deliver modernized air defense capabilities to North American Aerospace Defense Command and Pacific Air Forces.
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, in turn, will be beneficial for SAIC’s top-line growth.
Last week, 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, SAIC secured a blanket purchase agreement from the Transportation Security Administration (“TSA”) to continue performing the operational testing and evaluating 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. It had generated revenues of $1.78 billion in the year-ago quarter.
Zacks Rank & Key Picks
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have rallied 19.6% over the past year.
Some better-ranked stocks from the broader technology sector are Paylocity Holding PCTY, Zscaler ZS and Nutanix NTNX. Paylocity sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Nutanix each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Paylocity’s second-quarter fiscal 2023 earnings has remained unchanged at 70 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved up 3 cents to $4.05 per share in the past 60 days.
Paylocity's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 51.2%. Shares of the company have gained 3% in the trailing 12 months.
The Zacks Consensus Estimate for Zscaler's second-quarter fiscal 2023 earnings has been revised 3 cents upward to 29 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved up by a penny to $1.24 per share in the past seven days.
ZS’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 27.3%. Shares of the company have declined 56.2% over the past year.
The Zacks Consensus Estimate for Nutanix's second-quarter fiscal 2023 earnings has been revised northward by 2 cents to 11 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved upward by 4 cents to 17 cents per share in the past 60 days.
Nutanix's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 86.1%. Shares of NTNX have slumped 5.3% in the trailing 12 months.
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