SAIC - Science Applications Q1 Earnings Miss Shares Fall 12% | Benzinga
Science Applications International Corporation's (NASDAQ: SAIC) shares plunged 11.8% on Monday after the company reported lower-than-expected bottom-line results for the first quarter of fiscal 2025. The company reported first-quarter adjusted earnings of $1.92 per share, which missed the Zacks Consensus Estimate by a penny.
The bottom line decreased 20% year over year due to a decline in revenues, increased internal investment and program performance milestones being weighted to the second half of the year. This was partially offset by a lower tax rate and a roughly 5% reduction in the weighted average share count.
Revenues declined 9% year over year to $1.85 billion but surpassed the consensus mark of $1.84 billion. The year-over-year decrease was due to the sale of the logistics and supply chain management division. The downside was partially offset by a ramp-up in existing and new contracts. Nevertheless, the top line increased 0.4% when adjusted for the impact of the logistics and supply chain management division's divestiture.
Adjusted EBITDA was $166 million, down 12% year over year. The adjusted EBITDA margin contracted 30 basis points (bps) on a year-over-year basis to 9%.