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Jul 31, 2020

SAIC Q2 2021 Earnings Report

SAIC's Q2 2021 financial results were announced, showcasing revenue growth and strong bookings.

Key Takeaways

SAIC reported an 11% increase in revenue to $1.8 billion, driven by acquisitions and new contracts. The company's net bookings reached $4.6 billion, resulting in a book-to-bill ratio of 2.6. Adjusted diluted earnings per share increased to $1.63, and the company highlighted its resilient revenue base and strong cash generation.

Revenues increased by 11% to $1.8 billion, with a slight contraction excluding acquired revenues.

Diluted earnings per share were $0.87, while adjusted diluted earnings per share reached $1.63.

Net bookings amounted to $4.6 billion, yielding a book-to-bill ratio of 2.6.

The estimated backlog of signed business orders at the end of the quarter was approximately $19.4 billion.

Total Revenue
$1.76B
Previous year: $1.59B
+10.7%
EPS
$1.63
Previous year: $1.35
+20.7%
Total Backlog
$19.4B
Gross Profit
$200M
Previous year: $185M
+8.1%
Cash and Equivalents
$197M
Previous year: $179M
+10.1%
Free Cash Flow
$90M
Previous year: $90M
+0.0%
Total Assets
$5.95B
Previous year: $4.63B
+28.5%

SAIC

SAIC

Forward Guidance

SAIC updated its fiscal year 2021 guidance, expecting revenue between $7.1 billion and $7.2 billion, adjusted diluted EPS between $5.80 and $6.10, and free cash flow to meet or exceed $500 million.

Positive Outlook

  • Revenue between $7.1 billion - $7.2 billion
  • Adjusted Diluted EPS between $5.80 - $6.10
  • Free Cash Flow to meet or exceed $500 million

Challenges Ahead

  • Potential impact of the COVID-19 pandemic to be $250 million in revenue
  • Potential impact of the COVID-19 pandemic to be $35 million in adjusted EBITDA
  • Continued impact from COVID-19 through the end of fiscal year 2021 (January 29, 2021)
  • Support currently provided under Section 3610 of the CARES Act is extended through that period