Science Applications (SAIC) Grabs $63M US Navy Contract
Science Applications International Corporation SAIC has secured a $63 million contract from the U.S. Navy. This deal is tailored to bolster hypersonic advanced concepts and strategic mission solutions for the Navy’s Strategic Systems Programs, the Naval Surface Warfare Center Crane, Ind. and the Strategic Systems Hardware Division.
Barbara Supplee, SAIC’s senior vice president of the Navy Business Group, expressed enthusiasm about the company’s role. SAIC aims to cover the entire lifecycle of research and development, from technology maturation to testing and eventually implementing next-generation hypersonic technology. The work will be primarily carried out at the Navy’s Crane facility and other crucial performance locations.
Under the contract, SAIC will focus on enhancing hypersonic advanced concepts and strategic missions. This encompasses a range of elements such as systems, subsystems, components, features and various technologies, including Hardware-in-the-Loop and Software-in-the-Loop simulations, manufacturing techniques and more.
SAIC’s commitment extends to developing unique test capabilities, identifying technology gaps, proposing requirements and solutions and evaluating the suitability of specific technologies, including their flight qualifications. SAIC’s support will facilitate quick-reaction analysis and engineering across Department of Defense hypersonic initiatives, preserving technological superiority.
With an aim to continuously counter emerging threats effectively, SAIC will spearhead improvements in cutting-edge technologies, exploring new technical approaches, fostering technology transfer and integration and ensuring the enhancement, modernization and sustainability of hypersonic advanced concepts.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Continuous Flow of Contracts
SAIC is benefiting from the higher demand for its technology solutions due to the ongoing digital transformation wave across the defense, space, intelligence and civilian markets. The continuous flow of high-value contracts reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction. As of Nov 3, 2023, SAIC’s total contract backlog was $23.1 billion.
SAIC 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 the company’s top line.
SAIC’s third-quarter fiscal 2024 revenues increased 10.6% when adjusted for the impact of the logistics and supply-chain management division divesture and the deconsolidation of the Forfeiture Support Associates joint venture. A ramp-up in existing and new contracts primarily drove the upside.
Adjusted earnings for the quarter soared 19% to $2.27 per share. The robust year-over-year growth in the bottom line was primarily driven by solid operating performance along with the benefits of a lower tax rate and reduction in outstanding share count.
Zacks Rank & Other Stocks to Consider
Currently, SAIC sports a Zacks Rank #1 (Strong Buy). The stock has risen 14.7% in the trailing 12 months.
Some other top-ranked stocks from the broader technology sector are Zoom Video Communications Inc. ZM, NVIDIA Corporation NVDA and Microsoft Corporation MSFT. While Zoom sports a Zacks Rank #1, NVIDIA and Microsoft 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 Zoom’s fiscal 2024 earnings has been revised upward by 28 cents to $4.94 per share in the past 60 days, suggesting year-over-year growth of 13%. The long-term estimated earnings growth rate for the stock stands at 33.5%. Shares of ZM have risen 1.9% over the past year.
The consensus mark for NVIDIA’s fiscal 2024 earnings has been revised upward by 12 cents to $12.29 per share over the past 30 days, indicating a whopping 268% increase from fiscal 2023. It has a long-term earnings growth expectation of 13.5%. In the trailing 12 months, NVDA stock has surged 236.5%.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 earnings has been revised upward by a penny to $11.14 per share in the past seven days, which calls for an increase of 13.5% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 13.6%. MSFT stock has returned 65.5% over the past year.
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