Written by StockNews.com

Science Applications International Corp (NYSE: SAIC) early Thursday posted mixed fourth quarter earnings results, as profits met expectations but its revenues fell short of analyst estimates.

The McLean, VA-based I.T. defense contractor reported:

• Q4 earnings per share (EPS) of $0.79, which was in-line with the Wall Street consensus estimate of $0.79.
• Revenues fell 4.2% from last year to $1.03 billion, falling short of analysts’ view for $1.09 billion.

SAIC noted that its estimated backlog of signed business orders at the end of fiscal 2017 was about $8.0 billion. Of that total, around $1.8 billion was funded.

• Its book-to-bill ratio was around 0.8 in the fourth quarter, and 1.2 for the full year. Book-to-bill ratio is an important industry metric that refers to the ratio of orders received to the amount billed for a specific period, and is considered a leading indicator of demand trends.

SAIC CEO Tony Moraco commented on its latest results via a press release, saying:

“SAIC’s fourth quarter and full fiscal year 2017 results demonstrate continued execution of the business strategy and although revenue growth was a challenge, we are positioned well against an improving market backdrop.

Program performance, margin improvement, strong cash flow generation and disciplined capital deployment continue to be the hallmarks of the SAIC shareholder value proposition.”

...Year-to-date, SAIC has gained 2.08%, versus a 5.37% rise in the benchmark S&P 500 index during the same period.

SAIC currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #22 of 75 stocks in the Air/Defense Services category.