Shares of engineering and enterprise IT services provider Science Applications (SAIC) - Get Report were up nearly 7% Friday after the company reported fourth-quarter results well ahead of expectations.
The Reston, Virginia-based company reported adjusted earnings of $1.17 per share, easily topping Zacks Invest Research expectations for 89 cents. Revenue of $1.19 billion also beat forecasts of $1.18 billion.
The company also announced it was raising its quarterly dividend 20% to 37 cents per share, payable April 26, to stockholders of record on April 12.
"SAIC's full-year results reflect our strongest financial performance in five years and we are better positioned than ever to accelerate our strategy to deliver sustained profitable growth," said CEO Tony Moraco. "As we look to the future, the recent acquisition of Engility provides increased momentum in delivering the value proposition to all of our stakeholders."
The company did report an decrease in operating income as a percentage of revenue of 0.6% due to the costs associated with its acquisition of Engility for $2.5 billion in an all-stock transaction. However, the acquisition also added about $64 million to the company's quarterly top-line.
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