Science Applications International Corp (NYSE:SAIC) stock rose 0.89% (As on June 7, 2:28:59 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Cash flows provided by operating activities for the first quarter were $118 million, a decrease of $71 million compared to the prior year quarter, primarily due to lower net earnings, cash payments during the quarter associated with certain change in control provisions related to the acquisition of Halfaker, and timing of customer collections and vendor disbursements. Free cash flow for the first quarter decreased by $51 million from the prior year quarter to $113 million, primarily due to lower net earnings, cash payments during the quarter associated with certain change in control provisions related to the acquisition of Halfaker, and timing of customer collections and vendor disbursements. During the quarter, SAIC deployed $95 million of capital, consisting of $68 million of plan share repurchases, $22 million in cash dividends, and $5 million of capital expenditures. In addition, SAIC made $59 million of mandatory debt repayment in the first quarter. Net bookings for the quarter were approximately $2.0 billion, which reflects a book-to-bill ratio of 1.0 and a trailing twelve months book-to-bill ratio of 1.0. SAIC’s estimated backlog at the end of the quarter was approximately $24.1 billion. Of the total backlog amount, approximately $3.2 billion was funded.

SAIC in the first quarter of FY 23 has reported the adjusted earnings per share of $1.88, beating the analysts’ estimates for the adjusted earnings per share of $1.78, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 4 percent to $2 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $1.93 billion. This is primarily due to ramp up on new and existing contracts and the acquisition of Halfaker (approximately $42 million), partially offset by contract completions. Operating income as a percentage of revenues decreased from the comparable prior year period primarily due to higher indirect costs in the current year period and higher benefit from net favorable settlement of prior indirect rate years in the prior year period, partially offset by improved profitability across our contract portfolio. Adjusted EBITDA as a percentage of revenues for the quarter decreased to 8.7% from 9.8% for the same period in the prior year primarily due to higher indirect costs in the current year period and higher benefit from net favorable settlement of prior indirect rate years in the prior year period, partially offset by improved profitability across the contract portfolio.

The company also increased its full-year revenue guidance to a new range of $7.43 billion-to-$7.55 billion with the lower end of range 1% higher than the previous outlook.