Science Applications International Reports 7.4% Organic Growth, Sets $7.5 Billion Revenue Target for FY25
Science Applications International Corporation (NASDAQ: SAIC) has unveiled its results for the fourth quarter and the full fiscal year 2024, marking significant achievements and setting a solid foundation for future growth.
The company reported Q4 FY24 revenues of $1.74 billion, exhibiting a 7.7% organic growth, and full-year revenue of $7.44 billion, indicating a 7.4% organic growth.
This growth reflects SAIC’s strategic divestitures and the extra working days in the previous year. The company’s net income was $39 million for the quarter, with an adjusted EBITDA of $127 million, or 7.3% of revenue.
The full year saw net income of $477 million and adjusted EBITDA of $668 million or 9.0% of revenue, factors impacted by higher incentive-based compensation. SAIC’s diluted earnings per share for Q4 FY24 were $0.74, with an adjusted diluted earnings per share of $1.43. The company also reported strong cash flow, with $63 million provided by operating activities in Q4 and $396 million for the full fiscal year.
Science Applications Misses Out on Q4 EPS by $0.01
When compared against the expectations, SAIC’s performance in Q4 FY24 has outperformed the projected metrics. Analysts had anticipated an EPS of $1.44 and revenue of $1.64 billion for the quarter. SAIC’s reported revenue of $1.74 billion surpassed these expectations, showcasing the company’s capability to drive growth and exceed market predictions.
The adjusted diluted earnings per share of $1.43 were slightly under the anticipated EPS, missing it by $0.01, but reflected the company’s strategic financial management and its impacts from higher compensation expenses.
SAIC Excepts Adjusted EBITDA for 2025 to be Between $680 million and $700 million
SAIC has updated its fiscal year 2025 guidance to reflect an optimistic outlook based on the company’s current performance trajectory and market opportunities. The company anticipates revenues to be between $7.35 billion and $7.50 billion, with adjusted EBITDA expected to be between $680 million to $700 million.
The adjusted EBITDA margin percentages are forecasted to be between 9.2% and 9.4%, with adjusted diluted EPS projected to remain within the $8.00 to $8.20 range. Free cash flow expectations have been adjusted to range between $490 million and $510 million, highlighting SAIC’s focus on sustaining its financial health and investing in strategic growth areas.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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