Science Applications International Corporation SAIC recently secured Falconer Air Operations Center (AOC) Weapon System Sustainment contract worth $319 million from the U.S. Air Force.
Teaming up with Kessel Run, a Division within the Air Force Life Cycle Management Center’s Digital Directorate, SAIC will provide global AOCs with a reliable, secure and modernized mission system to plan and conduct air operations. The AOC Weapon System develops operations strategy and planning documents, disseminates tasking orders, executes day-to-day peacetime and combat air, space and cyber operations, and provides rapid reaction to immediate situations by exercising positive control of friendly forces.
Under the Falconer program, Air Force component commanders plan, execute and assess air, space and cyberspace operations. The AOC ingests, analyzes and disseminates command, control and intelligence data to support such operations.
Science Applications International Corporation Price and Consensus
Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote
Per the deal, Science Applications will act as a system integrator to optimize Falconer Weapon System’s operational capabilities while transforming it into a modernized, highly capable and sustainable system. This reflects SAIC’s position as a leader in cloud migration and digital modernization.
The company is focused on the federal government marketplace and capturing more market share. It intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy, and strengthening existing customer relations while building newer ones. Higher spending, as proposed in the latest federal government budget, is anticipated to accelerate the pace of contract awards, which in turn will be beneficial for SAIC’s top-line growth.
Science Applications won a $390 million task order from the General Services Administration on behalf of the U.S. Space Force/Space Systems Command during the first quarter of the fiscal year 2023. Further, it secured $337 million of contract awards by space and intelligence community organizations during the same period.
During first-quarter fiscal 2023, Science Applications reported revenues of $2 billion, witnessing a 6% surge from the year-ago quarter. This was mainly driven by contributions from the newly acquired Halfaker business and the ramp-up of new and existing contracts.
The Zacks Consensus Estimate for SAIC’s second-quarter fiscal 2023 revenues is pegged at $1.82 billion, suggesting a year-over-year fall of 0.83%.
Zacks Rank & Key Picks
Science Applications currently carries a Zacks Rank #3 (Hold). Shares of SAIC have increased 14.4% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Clearfield CLFD, Silicon Laboratories SLAB, and Taiwan Semiconductor TSM. While Clearfield and Silicon Laboratories sport a Zacks Rank #1 (Strong Buy), TSM carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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TSM's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%. Shares of the company have decreased 19.3% in the past year.
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