12:24 PM EDT, 03/18/2024 (MT Newswires) -- Science Applications International's ( SAIC ) fiscal fourth-quarter results declined on a yearly basis, with earnings falling short of market estimates, although the US government services contractor raised its full-year revenue outlook.

Adjusted earnings came in at $1.43 a share for the quarter ended Feb. 2, down from $2.04 the year before and just shy of the Capital IQ-polled consensus of $1.44. Revenue slid 12% to $1.74 billion, but topped the Street's view of $1.64 billion. The stock fell 9.7% in midday trading.

The revenue drop was mainly due to the sale of the company's logistics and supply chain management business last year, the deconsolidation of its Forfeiture Support Associates joint venture, and contract completions, among other factors. Excluding the sale and the deconsolidation, revenue climbed about 7.7%, according to the company.

Net bookings for the quarter were roughly $1.4 billion, resulting in a book-to-bill ratio of 0.8. The backlog at the end of the fiscal 2024 was about $22.8 billion, of which $3.5 billion was funded. Selling, general, and administrative expenses widened to $114 million from $102 million in the prior year quarter.

For fiscal 2025, the company now expects revenue of $7.35 billion to $7.5 billion, up from its prior guidance of $7.25 billion to $7.4 billion. The Street is looking for $7.37 billion. In the fiscal year that just ended, revenue decreased 3% to $7.44 billion.

"This outlook assumes a more typical outlay environment than we saw in fiscal 2024 and incorporates our expectation for an approximately 4% to 5% headwind from contract transitions spread ratably over the course of the year," Chief Financial Officer Prabu Natarajan said during an earnings call, according to a Capital IQ transcript.

"We expect roughly flat to low single-digit organic growth in the first half with higher growth rates in the second half of fiscal 2025, as we ramp on the strength of our new business wins and see more funding clarity for our customers," Natarajan said.

Science Applications International ( SAIC ) continues to expect adjusted EPS of $8 to $8.20 for the ongoing fiscal year 2025. Analysts currently estimate normalized earnings of $8.12 a share. The company also anticipates adjusted earnings before interest, taxes, depreciation, and amortization of $680 million to $700 million.

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