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Feb 03, 2023

SAIC Q4 2023 Earnings Report

SAIC's Q4 2023 financial results showcased revenue growth and improved profitability.

Key Takeaways

SAIC reported a 10% increase in Q4 2023 revenues, reaching $1.97 billion, driven by additional working days and contract ramp-up. Diluted earnings per share increased to $1.34, and adjusted diluted earnings per share was $2.04. The company's strategic portfolio actions and new business development are expected to drive future growth.

Q4 2023 revenues reached $1.97 billion, a 10% increase year-over-year.

Diluted earnings per share for Q4 2023 was $1.34, up from $0.76 in the prior year quarter.

Adjusted diluted earnings per share for Q4 2023 was $2.04, compared to $1.50 in the prior year quarter.

Net bookings for the quarter were approximately $1.3 billion, resulting in a book-to-bill ratio of approximately 0.7.

Total Revenue
$1.97B
Previous year: $1.78B
+10.4%
EPS
$2.04
Previous year: $1.5
+36.0%
Total Backlog
$23.8B
Previous year: $24.1B
-1.2%
Gross Profit
$222M
Previous year: $197M
+12.7%
Cash and Equivalents
$109M
Previous year: $106M
+2.8%
Free Cash Flow
$148M
Previous year: $94M
+57.4%
Total Assets
$5.54B
Previous year: $5.75B
-3.5%

SAIC

SAIC

Forward Guidance

SAIC provided fiscal year 2024 guidance, projecting revenue between $7.05B and $7.20B, adjusted EBITDA margin of 9.2% - 9.4%, adjusted diluted EPS between $6.80 and $7.00, and free cash flow between $460M and $480M. The guidance reflects the Logistics & Supply Chain Management (L&SCM) divestiture, deconsolidation of Forfeiture Support Associates joint venture and inclusion of impact from Section 174 of the Internal Revenue Code on cash tax payments.

Positive Outlook

  • Midpoint of fiscal year 2024 guidance reflects ~3% pro-forma organic revenue growth.
  • 50 bps of adjusted EBITDA margin expansion compared to fiscal year 2023.
  • 10% pro-forma free cash flow growth compared to fiscal year 2023.

Challenges Ahead

  • Fiscal year 2024 guidance reflects Logistics & Supply Chain Management (L&SCM) divestiture.
  • Deconsolidation of Forfeiture Support Associates joint venture.
  • Inclusion of impact from Section 174 of the Internal Revenue Code on cash tax payments.