SAIC's 1Q Results: Postgame Scorecard

SAIC (NYSE:SAI) saw its profit fall in the most recent quarter.

Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 35 cents a share versus the 33 cents a share estimate and revenues of $2.78 billion versus the $2.69 billion estimate. The estimates of 12 analysts ranged from profit of 30 cents to profit of 35 cents.

The company's net income for the quarter was $117 million. According to the reported number, this is down 10.7% from last year's levels. Revenue climbed 3.5% from $2.69 billion in the same period last year.

Company Fundamental Trends The company's profit in the latest quarter comes on the heels of losses in the previous two quarters. In the fourth of the last fiscal year, The company reported a net loss of $161 million while losses totaled $89 million in the third quarter of the last fiscal year. The company bounced back last quarter with a year over year revenue increase after three consecutive quarters of revenue declines.

History Against Expectations The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year. It reported net income of 31 cents versus a mean estimate of net income of 34 cents per share.

Official Comment: "Our performance for the quarter reflects a combination of pressures we are seeing in the market and internal investments being made to prepare for the future," said John P. Jumper, SAIC president and chief executive officer. "Despite these two factors, I am pleased we delivered positive revenue growth for the quarter, growth that can be attributed to a strategy that leverages our diverse portfolio of government and commercial offerings and the dedicated work of our employees who deliver the highest level of performance to our customers every day."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.

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