Science Applications (SAIC) Clinches U.S. Navy Contract Worth $85M
Science Applications SAIC recently secured a five-year, $85 million, single-award, cost-plus-fixed-fee contract from the U.S. Navy. Per the deal, the company will continue to provide software engineering, DevSecOps, cloud migration, and cyber support to the U.S. Navy’s Joint Expeditionary Command and Control (JEXC2) family of systems.
SAIC stated that the contract required it to support the Naval Surface Warfare Center Panama City Division (NSWC PCD) to design, deliver, and sustain a complex portfolio of JEXC2 systems and capabilities. Notably, the company’s Agile software development lifecycle and innovative cloud solutions will help it make the deal successful.
SAIC president of the Defense & Civilian Sector, Bob Genter said, "SAIC’s support will assist the Navy in its goal to field common, supportable command and control equipment across its Navy Expeditionary Forces and to enable communication and collaboration among U.S. national, allied, coalition, and joint organizations accelerating digital transformation."
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Contracts Keep Flowing to SAIC
SAIC 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. Notably, as of Apr 30, 2021, the company’s total contract backlog was $24 billion.
Furthermore, having the government as a big client lends stability to the business and moderates fluctuation in revenues.
This June, SAIC secured a $90-million contract from the U.S. Air Force Life Cycle and Management Center, Force Protection Division. Per the deal, the company will help the U.S. Department of Defense modernize and strengthen defense against sophisticated threats like small unmanned aircraft system (sUAS) threats.
In the same month, SAIC received a five-year, $126-million, single-award task order from the Department of Defense Information Analysis Center to provide research and development (R&D) support to the U.S. Army Combat Capabilities Development Command (DEVCOM) Ground Vehicle Systems Center (GVSC).
In May, the company received a major single-award defense contract with an estimated ceiling value of approximately $200 million, to provide laboratory operations and support to the Defense Intelligence Agency.
Moreover, in April, the company received a contract worth $3.6 billion from the U.S. Army to continue supporting the U.S. Army Combat Capabilities DEVCOM Aviation & Missile Center, Software, Simulation, Systems Engineering and Integration (S3I) Directorate.
Zacks Rank and Stocks to Consider
SAIC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Digital Turbine APPS, Zoom Video Communications ZM and Salesforce CRM, While Digital Turbine and Zoom sport a Zacks Rank #1 (Strong Buy), Salesforce carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Digital Turbine, Zoom and Salesforce is currently pegged at 50%, 15.6% and 18.4%, respectively.
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