Science Applications International Corp (NYSE:SAIC) reported stronger-than-expected results for its fourth quarter and raised its quarterly dividend from 31 cents to 37 cents.
The Reston, Va.-based company reported Q4 revenues of $1.2 billion, an increase of 6%. Operating income for the fiscal year decreased $36 million to 4.7% of revenues, down from 5.7% of revenues in the prior fiscal year.
The decrease in operating income was primarily due to costs associated with the acquisition and integration of Engility ($86 million) and an increase in our inventory and deferred contract cost provisions, partially offset by improved performance across our portfolio and the realization of cost efficiencies resulting from our restructuring activities in fiscal 2018.
Net income for the quarter decreased $60 million from the comparable prior year period primarily as the result of lower operating income and higher interest expense due to the acquisition of Engility and a higher effective tax rate as fiscal 2018 included a one-time favorable adjustment from the Tax Cuts and Jobs Act.
"SAIC’s full year results reflect our strongest financial performance in five years and we are better positioned than ever to accelerate our strategy to deliver sustained profitable growth," said CEO Tony Moraco.
"The seamless transition of the CEO role to Nazzic Keene provides leadership stability and continuity, combined with new market access and an improved financial position, as SAIC begins an exciting next chapter in its proud history."
Shares galloped $5.02, or 6.8%, to $78.57
Related Stories
