SAIC Secures $150M Contract From US Transportation Command
Science Applications International Corporation SAIC revealed last week that the United States Transportation Command (“USTRANSCOM”) has selected it to modernize the organization’s IT management systems. The company will also be responsible for infusing the latest innovations into USTRANSCOM’s enterprise IT and introducing IT-as-a-service models.
Per the company, this is a follow-on contract of the Information Technology Service Management program. With this contract, Science Applications will manage almost all enterprise IT services for the organization.
The newly signed deal is a single-award indefinite delivery, indefinite quantity Managed Information Technology Services contract, which has a value of approximately $150 million. The contract will run over a period of five years.
“Our work with customers like United States Central Command and the Air Force’s Cloud One program has positioned SAIC to deliver mission enabling enterprise IT, including top-tier end user satisfaction, fully integrated mission enhancement and cyber security through Zero Trust and cloud migration,” said Michael LaRouche, the president of the National Security and Space Sector at SAIC. He further said, “We are thrilled to bring our best-in-industry enterprise IT expertise to USTRANSCOM’s critical mission. This work will benefit USTRANSCOM and their delivery of responsive, global mobility at scale.”
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 new ones.
Increased federal spending is anticipated to accelerate the pace of contract awards. This will be beneficial for SAIC’s top line.
Last month, the company secured a blanket purchase agreement from the Transportation Security Administration (“TSA”) to continue performing the operational testing and evaluation of 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 due to 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 compared with the year-ago quarter’s $1.78 billion.
Zacks Rank & Key Picks
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have rallied 27.6% 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 declined 15.3% 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 62.3% 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 3 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 16.1% in the trailing 12 months.
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