Science Applications (SAIC) Wins $1.3B Deal From U.S. Treasury
Science Applications International Corporation SAIC recently received a single-source contract worth $1.3 billion from the U.S. Department of Treasury to provide T-Cloud, a complete range of cloud and professional information technology services.
Under the seven-year agreement, SAIC will deliver services for business operations, technical, security, network, service desk, subject matter expert support and transition services to the Treasury Department. The T-Cloud solution suite will centralize systems infrastructure, platform and software-as-a-service management by a single broker.
With this deal, the department will get access to complete suites of AWS, Microsoft, Google, IBM and Oracle cloud services and new cloud service providers. This will help the department to securely adopt a modern, flexible and cost-effective approach to utilizing and consuming cloud data. Further, it puts a focus on SAIC’s Growth and Technology Accelerants in the area of secure cloud capabilities.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
The company 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 May 5, 2023, the company’s total contract backlog was $23.8 billion.
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 newer ones. Increased federal spending is anticipated to accelerate the pace of contract awards, which will be beneficial for the company’s top line.
On Jun 8, SAIC announced that the Space Development Agency has selected it for developing a software application factory for the agency’s constellation of low-earth orbit satellites under a contract worth $64 million.
Last month, Science Applications grabbed a contract worth $249 million from the U.S. Navy to continue supporting the Naval Air Warfare Center Weapons Division’s combat instrumentation platforms used for training and test evaluation ranges. In April 2023, the company was awarded an $889 million contract by the Federal Systems Integration and Management Center in support of the Defense Counterintelligence and Security Agency to develop and implement One IT, which provides IT modernization to the agency’s systems.
Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold). Shares of SAIC have gained 21.3% over the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Meta Platforms META, ServiceNow NOW and Dropbox DBX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised downward by 5 cents to $2.82 per share over the past 30 days. For 2023, earnings estimates have moved north by a penny to $11.94 in the past seven days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have soared 79.7% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 6.2% to $2.05 per share over the past 60 days. For 2023, earnings estimates have moved up by 43 cents to $9.59 in the past 60 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 13.2% in the past year.
The Zacks Consensus Estimate for Dropbox’s second-quarter 2023 earnings has been revised southward from 41 cents to 45 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 10.1% to $1.85 in the past 60 days.
DBX's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have jumped 21% in the past year.
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