SAIC 1st-qtr earnings rise as expenses decline, profit beats analyst views but revenue misses

SAIC 1Q profit climbs with lower expenses

MCLEAN, Va. — Defense contractor Science Applications International Corp. said Thursday that its fiscal first-quarter profit rose as expenses declined.

Shares of SAIC, whose profit beat Wall Street views even as revenue fell short of expectations, fell 62 cents, or 3.5 percent, to $17 in after-hours trading. The stock had finished regular trading up 18 cents at $17.62.

For the quarter that ended April 30, SAIC Inc. earned $125 million, or 32 cents per share, compared with $116 million, or 29 cents per share, in the year-ago quarter. The results were a penny higher than analysts polled by Thomson Reuters expected.

Revenue inched up 1 percent to $2.69 billion from $2.65 billion last year; analysts expected $2.75 billion.

The company said growth was hampered by a lower number of new contracts starting and decreased materials demand.

Selling, general and administrative expenses dropped 16 percent to $126 million from $150 million in the year-ago period.