SAIC stock jumps after profit rises well above expectations, full-year outlook raised

Shares of Science Applications International Corp.
SAIC,
+1.18%
jumped 5% in premarket trading Monday, after the maker of components for the defense and space markets reported fiscal first-quarter profit that was well above expectations and boosted its full-year outlook. Net income for the quarter to May 5 rose to $98 million, or $1.79 a share, from $74 million, or $1.29 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.14 beat the FactSet consensus of $1.83. Revenue grew 1.6% to $2.03 billion, above the FactSet consensus of $1.96 billion, amid a “ramp up on existing and new contracts.” Cost of sales rose less than sales, up 1.3% to $1.79 billion, as gross margin improved to 11.6% from 11.3%. For fiscal 2024, SAIC raised its guidance ranges for adjusted EPS to $7.00 to $7.20 from $6.80 to $7.00 and for revenue to $7.125 billion to $7.225 billion from $7.05 billion to $7.20 billion. The stock has lost 7.1% over the past three months through Friday, while the S&P 500
SPX,
-0.20%
has gained 5.9%.