SAIC Climbs on Calming Forecast
SAN FRANCISCO -- Shares of SAIC (SAI) rose Tuesday after the company reaffirmed its full-year financial targets, giving investors confidence that it's weathering recent problems.
The stock was recently trading up 61 cents, over 3%, to $19.29 after management told analysts that the engineering- and information-technology-services contractor was on track to earn 83 to 88 cents a share from continuing operations for the current fiscal year, in line with prior guidance.
Analysts, on average, were expecting SAIC to earn 87 cents a share, excluding one-time items.
SAIC also reiterated its earlier annual revenue forecast of $8.7 billion to $9 billion, in line with analyst expectations. That forecast represents growth of 5% to 8.5%.The company also expects cash flow from operations to reach at least $450 million, down from $704 million last year. SAIC's stock has taken several hits this year since it originally issued its fiscal-year financial targets in April. The company has grappled with high employee turnover, pressure on its profit margins and the expiration of the lock-up period preventing employees from selling shares they were granted during the October 2006 initial public offering. Employees hold the majority of SAIC's shares. One of the biggest blows came in May when
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV