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Nov 03, 2023

SAIC Q3 2024 Earnings Report

SAIC's Q3 2024 earnings were announced, revealing a mix of divestiture impacts and organic growth.

Key Takeaways

SAIC reported revenues of $1.90 billion, a 1% decrease year-over-year, but experienced 10.6% organic growth when adjusted for divestitures. Net income reached $93 million, with adjusted EBITDA at $178 million, reflecting a 9.4% margin. The company increased its revenue and adjusted diluted EPS guidance for fiscal year 2024.

Revenues reached $1.90 billion, reflecting a 10.6% organic growth rate when adjusted for divestitures.

Net income was reported at $93 million, with an adjusted EBITDA of $178 million, marking a 9.4% margin on revenues.

Diluted earnings per share stood at $1.76, while adjusted diluted earnings per share reached $2.27.

Cash flows from operating activities amounted to $101 million, and transaction-adjusted free cash flow was $148 million.

Total Revenue
$1.9B
Previous year: $1.91B
-0.7%
EPS
$2.27
Previous year: $1.9
+19.5%
Total Backlog
$23.1B
Previous year: $24.4B
-5.3%
Gross Profit
$229M
Previous year: $221M
+3.6%
Cash and Equivalents
$311M
Previous year: $53M
+486.8%
Free Cash Flow
$97M
Previous year: $122M
-20.5%
Total Assets
$5.66B
Previous year: $5.63B
+0.5%

SAIC

SAIC

Forward Guidance

SAIC updated its fiscal year 2024 guidance, projecting revenues between $7.325B and $7.350B, an adjusted EBITDA margin of 9.3% to 9.4%, adjusted diluted EPS between $7.70 and $7.90, and transaction-adjusted free cash flow between $460M and $480M.

Positive Outlook

  • Revenue is projected to be between $7.325B and $7.350B.
  • Adjusted EBITDA margin is expected to be between 9.3% and 9.4%.
  • Adjusted Diluted EPS is anticipated to be between $7.70 and $7.90.
  • Transaction-Adjusted Free Cash Flow is guided to be between $460M and $480M.
  • The company's focus on strategic pivots across innovation, go-to-market, culture, and brand is expected to drive continued success.

Challenges Ahead

  • Guidance excludes expected cash tax and other payments of approximately $82M related to the L&SCM sale which will impact cash flows provided by operating activities in the second, third and fourth quarters of fiscal year 2024.
  • The company's future performance is subject to risks, uncertainties, and assumptions, including those discussed in the company's SEC filings.
  • Actual results may differ materially from the guidance and other forward-looking statements.
  • The company expressly disclaims any duty to update any forward-looking statement.
  • The variability of certain deductions for non-GAAP exclusions used to calculate net income may have an unpredictable and potentially significant impact on future GAAP financial results.