Science Applications International Corp (NYSE:SAIC) stock rose 1.27% (As on June 6, 11:19:08 AM UTC-4, Source: Google Finance) after the company lifted its fiscal 2024 outlook as the technical services company recorded higher first-quarter results, which topped market expectations. Net bookings for the three-month period totaled roughly $2.1 billion, resulting in a book-to-bill ratio of 1.1 times. The backlog at the end of the quarter was about $23.79 billion, of which roughly $3.9 billion was funded. Operating income as a percentage of revenues increased from the comparable prior year period primarily due to lower indirect costs, lower acquisition and integration costs, and a $7 million gain recognized from the deconsolidation of FSA. Adjusted EBITDA as a percentage of revenues for the quarter increased to 9.3% from 8.7% for the same period in the prior year primarily due to lower indirect costs and improved profitability across our contract portfolio. Cash flows provided by operating activities for the first quarter decreased $36 million compared to the prior year quarter, primarily due to the timing of payroll payments.

SAIC in the first quarter of FY 24 has reported the adjusted earnings per share of $2.14, beating the analysts’ estimates for the adjusted earnings per share of $1.81. The company had reported 3.5 percent increase in the adjusted revenue to $2.03 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.96 billion. Revenue growth was aided by an increase in existing and new contracts, partially offset by contract completions and $37 million due to the deconsolidation of the company’s Forfeiture Support Associates joint venture. Excluding the deconsolidation, revenue rose 3.5%, according to the firm.

Per-share adjusted earnings are now set to come in between $7 and $7.20 for the full year, up from previous projections of $6.80 to $7. Revenue is pegged at a range of $7.13 billion to $7.23 billion, compared with the prior forecast of $7.05 to $7.2 billion. The consensus among analysts on Capital IQ is for EPS of $6.97 on revenue of $7.15 billion. The improved revenue guidance reflects roughly $35 million of supply chain “outperformance” in the first quarter and about $15 million from “net improvements elsewhere. The company continues to see low- to mid-single-digit growth rate in every remaining quarter of the fiscal year after adjusting (the fourth quarter) for the five fewer working days this year.