Understanding Science Applications International’s Financial Performance and Warning Signs: A Comprehensive Analysis

Science Applications International (NASDAQ:SAIC) recently reported their full year 2024 financial results, showing a decrease in revenue and an increase in net income. Despite this, the company’s shares are currently down 11% from a week ago. Let’s take a closer look at their financial performance and the warning signs that investors should be aware of.

In the past year, Science Applications International’s only revenue segment was Aerospace/Defense – Maintenance & Services, which contributed US$7.44 billion in revenue. However, this made up only 88% of their total revenue, with cost of sales amounting to US$6.57 billion. The largest operating expense was General & Administrative costs, which totaled US$373.0 million and accounted for 94% of total expenses.

Looking ahead, the company is forecasted to have an average revenue growth of 2.0% p.a. over the next three years, compared to a 6.4% growth forecast for the Professional Services industry in the US. However, it’s important to note that there are four warning signs for Science Applications International that investors should be aware of before making any investment decisions.

Two of these warning signs are concerning and suggest that there may be issues with the company’s operations or strategy. It’s crucial for investors to carefully consider these signs before making any investment decisions and doing their own research on the company and its industry trends.

Overall, while Science Applications International’s financial results show some improvement in net income and profit margin compared to previous years, investors should be cautious about investing due to potential warning signs and market conditions.

If you have any feedback on this article or are concerned about its content, you can contact our editorial team directly or email them at editorial-team@simplywallst.com.

It’s important to remember that this article by Simply Wall St is general in nature and not intended as financial advice. Our analysis is based on historical data and analyst forecasts using an unbiased methodology.

Before making any investment decisions, conduct your own research and consider your own financial situation carefully before acting on any information presented herein.

Science Applications International (NASDAQ:SAIC) recently reported their full year 2024 financial results.

Their revenue decreased by 3