Science Applications Profit Falls, Yet Tops Estimate - Update

(RTTNews) - Science Applications International Corp (SAIC), a provider of technical, engineering and enterprise IT solutions, Tuesday reported a decline in fourth-quarter profit, hurt by lower revenue. However, earnings topped Wall Street estimates, while revenue missed expectations.

The company's stock dropped 2.7 percent in after-hours trade on the New York Stock Exchange.

SAIC, whose services are mainly used by the U.S. defense department, said the recent quarter was hurt mainly by loss of the DISN Global Solutions program.

There was also reduced activity on information technology and logistics programs due to in-theater force drawdown and completion of a program to supply technical support to the U.S. Army, the company said.

"This was the first full quarter as a separate company and was largely in line with our expectations," said CEO Tony Moraco. SAIC commenced operations in September following completion of a separation transaction from its former parent.

McLean, Virginia-based SAIC posted fourth-quarter net income of $33 million or $0.66 per share, compared with $43 million or $0.87 per share last year.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.65 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter dropped to $941 million from $1.16 billion a year ago. Analysts expected revenue of $945 million.

SAIC stock closed Tuesday at $35.96, up $0.53 or 1.50%, on a volume of 238k shares on the NYSE. In after hours, the stock dropped $0.96 or 2.67% at $35.00.