Defense tech specialist Science Applications International (NASDAQ: SAIC) missed quarterly expectations due to expenses tied to its CEO transition. Investors are taking a harsh view, sending SAIC shares down 10% as of 10:30 ET on Monday.
SAIC provides IT, tech, and engineering services to a range of government and defense customers. The company earned $1.43 per share in its fiscal fourth quarter, ending Feb. 2, which fell short of Wall Street's $1.47 consensus. Revenue came in at $1.74 billion, beating the $1.64 billion estimate, but higher costs associated with an acceleration of stock-based compensation and reorganization expenses weighed on the bottom line.
Adjusted margin based on earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to 7.3% in the quarter, below the 8.4% estimate and last quarter's 9.4% margin. The company's new business booked in the quarter came in at 0.81 times sales, which was slightly below what analysts had hoped for.
Source Fool.com