Science Applications International Corp (NYSE:SAIC) reported upbeat earnings for its second quarter, while sales missed estimates.
The Reston, Va-based SAIC, a leading technology integrator providing high-end solutions in engineering, IT, and mission solutions across the defense, space, civilian, and intelligence markets, reported net income of $57 million in the quarter ending August 2, compared to $49 million in the prior-year quarter.
Diluted earnings per share were $0.96. Adjusted diluted earnings per share were $1.35, an 11% increase from prior year.
Revenues for the quarter increased $479 million, or 43%, compared to the prior year quarter due to the acquisition of Engility. Adjusting for the impact of acquired revenues, revenues were consistent with the prior year quarter.
During the quarter, SAIC deployed $156 million of capital, consisting of $133 million in plan share repurchases (1.6 million shares) under SAIC's previously announced share repurchase program, $21 million in cash dividends, and $2 million of term loan repayment.
As part of the plan share repurchases made during the second quarter, SAIC repurchased $100 million (1.2 million shares) of shares at a discount to market from a private equity investor.
Said CEO Nazzic Keene,"SAIC had a solid quarter, keeping our attention on operational performance, completing another key acquisition integration milestone, and delivering strong business results.
"We continue to build momentum and leverage our new breadth to offer deeper expertise to our customers, focus on our people, and drive profitable growth."
SAIC shares dipped $5.95, or 6.6% to $84.49 in the early part of Friday’s session.
