Science Applications International (SAIC) - Get Report shares dropped on Friday after the defense and government services contractor's fiscal-second-quarter revenue came up short of analyst expectations.
The stock was trading down 7.3% to $83.85 after the Reston, Va., company reported revenue for the quarter ended Aug. 2. of $1.59 billion, missing the $1.64 billion estimate of analysts surveyed by Zacks Investment Research.
While that represented a 43% jump over the year-earlier quarter, all the growth came from Science Applications' acquisition of fellow defense contractor Engility, which SAIC bought last year for $1.5 billion, according to Zacks.
Excluding the revenue added by the Engility deal, Science Applications' revenue was flat with the year-earlier period.
"The company witnessed some delays in contract awards due to protests. Moreover, unmaterialized new businesses were also an overhang on the top line," Zacks noted.
Science Applications did better on the profit front, reporting $1.35 a share. That beat the $1.27 estimate of analysts polled by Zacks and bested last year's number by 11%.