Science Applications International Corp (NYSE: SAIC) gained ground Friday, as the company reported better-than-expected earnings for its third quarter.
The company, based in Reston, Virginia , reported revenues for the quarter increased $31 million, or 3%, compared to the prior year quarter primarily due to higher revenue on new contracts supporting NASA, the U.S. Army and the Environmental Protection Agency (EPA) ($56 million), partially offset by the completion of contracts and other net decreases across our portfolio.
These decreases include the loss of an IT integration contract supporting the Department of Homeland Security (DHS) ($14 million). The Company’s internal revenue growth for the third quarter was 3.0%.
Net income for the quarter increased $1 million from the comparable prior year period primarily due to lower interest expense as a result of refinancing our long-term debt in the prior year ($3 million, net of tax) partially offset by an increase in the effective tax rate.
According to CEO Tony Moraco "SAIC’s third quarter performance delivers on the expectations of revenue growth and improved profitability.
"In addition to the continued strong business development results, I am encouraged by the ongoing actions to align operations to our long-term strategy to drive the future success of the company."
SAIC is a premier technology integrator providing full life cycle services and solutions in the technical, engineering, intelligence, and enterprise information technology markets. The company boasts annual revenues of approximately $4.5 billion.
SAIC shares gained $4.56, or 6.1%, to $79.99
