Science Applications International Corp (SAIC), a provider of technical, engineering and enterprise IT solutions, Tuesday reported higher third-quarter profit, reflecting absence of separation transaction and restructuring expenses as well as improved contract performance. Earnings per share and revenues topped analysts' expectations.
SAIC commenced its operations on September 27, 2013, following completion of a spin-off transaction from its former parent.
For the third quarter ended October 31, 2014, the company's net earnings increased to $37 million or $0.77 per share from $22 million or $0.44 per share in the previous year.
On average, five analysts polled by Thomson Reuters estimated earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter decreased to $1.00 billion from $1.01 billion in the prior year. Analysts estimated revenues of $971.20 million for the quarter.
Excluding revenues performed by former parent, total revenues were $993 million, up 2 percent from $974 million last year.
Total cost of revenues declined to $917 million from $925 million a year ago. The prior-year quarter recorded separation transaction and restructuring expenses totaling $23 million.
The board has also declared a regular quarterly cash dividend of $0.28 per share, to stockholders of record on January 15, 2015, payable on January 30.
Tony Moraco, chief executive officer stated, "As we celebrate our first year as an independent company, we continue to focus on executing our strategy, serving our customers and investing in our employees."
SAIC closed Monday's trading at $49.81, down 1.07 percent.
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