Science Applications International's (NASDAQ:SAIC) Profits Appear To Have Quality Issues

Simply Wall St.06-11

The stock price didn't jump after Science Applications International Corporation (NASDAQ:SAIC) posted decent earnings last week. We did some digging and believe investors may be worried about some ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2442805377?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8031000-choice1-main-header/1585186592389","is_english":true,"pubTime":"2024-06-11 03:40","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2442805377","market":"us","top_or_hot":-1,"title":"Science Applications International's (NASDAQ:SAIC) Profits Appear To Have Quality Issues","media":"Simply Wall St.","content":"<div>\n<p>The stock price didn't jump after Science Applications International Corporation (NASDAQ:SAIC) posted decent earnings last week.  We did some digging and believe investors may be worried about some ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-saic/science-applications-international/news/science-applications-internationals-nasdaqsaic-profits-appea\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Science Applications International's (NASDAQ:SAIC) Profits Appear To Have Quality Issues</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nScience Applications International's (NASDAQ:SAIC) Profits Appear To Have Quality Issues\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-11 03:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/commercial-services/nasdaq-saic/science-applications-international/news/science-applications-internationals-nasdaqsaic-profits-appea><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The stock price didn't jump after Science Applications International Corporation (NASDAQ:SAIC) posted decent earnings last week.  We did some digging and believe investors may be worried about some ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-saic/science-applications-international/news/science-applications-internationals-nasdaqsaic-profits-appea\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/commercial-services/nasdaq-saic/science-applications-international/news/science-applications-internationals-nasdaqsaic-profits-appea","article_id":"2442805377","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8031000-choice1-main-header/1585186592389"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2442805377","pubTimestamp":1718048450,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"The stock price didn't jump after Science Applications International Corporation ( NASDAQ:SAIC ) posted decent earnings...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BK4588":"碎股","BK4123":"调查和咨询服务","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","PSQ":"纳指反向ETF","QID":"纳指两倍做空ETF","BK4112":"金融交易所和数据",".IXIC":"NASDAQ Composite","SAIC":"Science Applications Internation","QLD":"纳指两倍做多ETF","TQQQ":"纳指三倍做多ETF","NDAQ":"纳斯达克OMX交易所","SQQQ":"纳指三倍做空ETF","QQQ":"纳指100ETF"},"translate_title":"科学应用国际（纳斯达克：SAIC）利润出现质量问题","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAIC":1,"NDAQ":1,".IXIC":1,"TQQQ":0.6,"SQQQ":0.6,"QQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"The stock price didn't jump after Science Applications International Corporation (NASDAQ:SAIC) posted decent earnings last week.  We did some digging and believe investors may be worried about some underlying factors in the report.     See our latest analysis for Science Applications International NasdaqGS:SAIC Earnings and Revenue History June 10th 2024  How Do Unusual Items Influence Profit?  To properly understand Science Applications International's profit results, we need to consider the US$209m gain attributed to unusual items.   While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm.  When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year.  And, after all, that's exactly what the accounting terminology implies.   We can see that Science Applications International's positive unusual items were quite significant relative to its profit in the year to May 2024.  All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.    That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On Science Applications International's Profit Performance As we discussed above, we think the significant positive unusual item makes Science Applications International's earnings a poor guide to its underlying profitability.      As a result, we think it may well be the case that Science Applications International's underlying earnings power is lower than its statutory profit.    But the good news is that its EPS growth over the last three years has been very impressive.     At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly.    So while earnings quality is important, it's equally important to consider the risks facing Science Applications International at this point in time.    Our analysis shows 3 warning signs for Science Applications International (2 are potentially serious!) and we strongly recommend you look at them before investing.   This note has only looked at a single factor that sheds light on the nature of Science Applications International's profit.   But there is always more to discover if you are capable of focussing your mind on minutiae.  Some people consider a high return on equity to be a good sign of a quality business.  So you may wish to see this free  collection of companies boasting high return on equity, or  this list of stocks with high insider ownership. Valuation is complex, but we're helping make it simple.Find out whether Science Applications International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2442805377"}