Science Applications International (SAIC 73.60, -7.84) has slid 9.6% in pre-market action after reporting first quarter results. Today's early move comes after three weeks of gains that had lifted shares to levels from late March.
The defense contractor reported first quarter earnings of $1.08 per share, which may not be comparable to analyst estimates since the company recorded a $0.35 benefit resulting from the adoption of a new accounting standard. Revenue declined 9.2% year-over-year to $1.10 billion, which was a bit shy of expectations.
Net bookings recorded during the first quarter totaled $1.30 billion, representing a book-to-bill ratio of 1.2. Net bookings were in-line with last year's totals while book-to-bill ratio improved from 1.0 one year ago. Backlog totaled $8.20 billion, up from $7.20 billion last year. Funded backlog checked in at $1.80 billion, down from $2.10 billion one year ago.
Looking at contracts awarded during the first quarter, the company received a one-year base contract with four one-year options and a total award value of $320 million from the Environmental Protection Agency. The company will deliver, manage, and evolve end-user information technology services, communication and collaboration tools, and end-user devices for the entire EPA enterprise.
The U.S. intelligence community awarded the company classified contracts and tasks valued at $222 million
The Space and Naval Warfare Systems Center Atlantic awarded the company a task order to continue to perform command, control, communications, intelligence, surveillance, and reconnaissance engineering upgrades for tactical vehicles. The one-year base task with a six-month option has a total award value of $61 million.
It is worth noting that SAIC signed a five-year $620 million contract with NASA to provide multi-discipline engineering support services to the Goddard Space Flight Center in Maryland. This contract was signed after the end of the quarter