Science Applications (SAIC) Secures $375M U.S. Navy Contract
Science Applications International SAIC has bagged a $375 million contract from the U.S. Navy. The contract is for extending the supply and integration of its Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4/ISR) systems for land-based vehicle platforms to support the Naval Information Warfare Center Atlantic (NIWC Atlantic).
SAIC will use its professionals to install C4/ISR components in the tactical vehicles before NIWC Atlantic deploys them for critical operations inside and outside the U.S. territories. This five-year deal is one in a series of contracts that the company has received from the U.S. Navy.
In the past year, SAIC has signed multiple agreements, including a $349 million contract to support In-Service Engineering Agent functions for Afloat and Ashore Tactical Networks. The company recently entered into a deal to extend support for combat instrumentation platforms used by the Naval Air Warfare Center Weapons Division. It also signed an extension agreement for the MK 48 Mod 7 Heavyweight Torpedo program in April 2023. Other contracts include a deal to provide hardware and software support to modernize Naval Air Systems Command and an agreement supporting the U.S. Navy’s Hypersonics Advanced Concepts and Strategic Missions Program.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
SAIC Benefits From Federal Clientele
Science Applications’ revenues largely stemmed from the U.S. government, accounting for 98% of its total income. The company’s main clients are different government agencies, such as the military branches, the Department of Homeland Security, NASA and the Department of State, with whom it has prime contracts or subcontracts through other companies.
Science Applications remains focused on the federal government market, aiming to expand its market presence further. The company plans to achieve operational excellence by prioritizing both organic and inorganic growth strategies, enhancing current customer connections and forging new ones.
Having the government as a major client provides stability to the business and minimizes revenue fluctuations. While government projects typically undergo a prolonged approval process, once sanctioned, they generate revenues for several years. Additionally, government contracts enhance the predictability of future revenue streams.
Zacks Rank and Other Stocks to Consider
Currently, Science Applications sports a Zacks Rank #1 (Strong Buy). Shares of SAIC have gained 19.3% in the past year.
Some other top-ranked stocks from the broader technology sector are Kanzhun BZ, BlackLine BL and Everbridge EVBG, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings per share has been revised downward by 2 cents to 16 cents in the past 30 days. Shares of BZ have plunged 37.6% in the past year.
The Zacks Consensus Estimate for BlackLine’s fourth-quarter 2023 earnings has been revised by a penny northward to 55 cents per share in the past seven days. Shares of BL have declined 19.7% in the past year.
The Zacks Consensus Estimate for Everbridge’s fourth-quarter 2023 earnings has declined by a penny in the past 60 days to 49 cents per share. Shares of EVBG have lost 23.3% in the past year.
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