Benzinga | Mar 24, 2021 10:06AM EDT

Earnings Outlook For Science Applications Intl



On Thursday, March 25, Science Applications Intl (NYSE:SAIC) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Science Applications Intl analysts model for earnings of $1.46 per share on sales of $1.79 billion. In the same quarter last year, Science Applications Intl reported earnings per share of $1.58 on revenue of $1.54 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 7.59% decrease for the company. Sales would be up 16.23% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.53 1.44 1.40 1.34EPS Actual 1.62 1.63 1.38 1.58Revenue Estimate 1.83 B 1.80 B 1.72 B 1.57 BRevenue Actual 1.82 B 1.76 B 1.76 B 1.54 B

Stock Performance

Shares of Science Applications Intl were trading at $95.72 as of March 23. Over the last 52-week period, shares are up 33.79%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Science Applications Intl is scheduled to hold the call at 17:00:00 ET and can be accessed here.