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Science Applications (SAIC) Grabs Navy Contract Worth $1.1B

Science Applications SAIC recently secured a $1.1 billion contract from the U.S. Navy. 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.

According to Science Applications, AB/TC is a section of the Torpedo that houses propulsion and navigations systems, and features 26 major sub-assemblies, each of which require the integration of more than 500 parts and pieces.

A Continuous Flow of Contracts for SAIC

Shares of Science Applications have underperformed the Zacks Computer – IT Services industry in the year-to-date period. The stock has plunged 10.5% in the year so far, while the industry has gained 0.9%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

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 Oct 29, 2021, the company’s total contract backlog was $24 billion.

Moreover, the government as a big client lends stability to the business and moderates fluctuation in revenues.

In November 2021, Science Applications announced that it had secured $348 million worth of contracts from the space and intelligence communities in the third quarter of fiscal 2022. In the same month, SAIC revealed receiving a U.S. Navy contract worth $556 million to modernize its human resources service to the sailors, their families and future recruits.

On Nov 4, Science Applications announced that it was awarded a defense contract worth $93 million to provide R&D, engineering, testing, integration, cybersecurity, upgrades and sustainment for the numerous tactical threat systems to the U.S. Navy.

In July, Science Applications 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 family of systems.

In June, SAIC received a five-year, $126-million, single-award task order from the Department of Defense Information Analysis Center to provide R&D support to the U.S. Army Combat Capabilities Development Command Ground Vehicle Systems Center.

Zacks Rank & Stocks to Consider

Currently, Science Applications carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader technology sector include Google-parent Alphabet GOOGL, Diodes DIOD and PTC Inc. PTC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past 30 days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last 30 days.

Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. The GOOGL stock has rallied 68.4% year to date (YTD).

The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by a couple of cents to $1.45 per share over the past 30 days. For 2021, earnings estimates have moved upward by 2.4% to $5.06 per share over the past 30 days.

Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 58.2% YTD.

The consensus mark for PTC’s first-quarter fiscal 2022 earnings has been revised downward to $1.00 per share from $1.05 30 days ago. For fiscal 2022, earnings estimates have been revised downward by 4 cents to $4.19 per share in the last 30 days.

PTC’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have increased 0.6% YTD.


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Diodes Incorporated (DIOD) : Free Stock Analysis Report

Science Applications International Corporation (SAIC) : Free Stock Analysis Report

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PTC Inc. (PTC) : Free Stock Analysis Report

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