ATLANTA, March 30 (Reuters) - U.S. government services provider SAIC Inc posted fourth-quarter results that missed Wall Street estimates on Tuesday and its shares fell 6 percent after the bell as it said contract delays would weigh on performance over the next year.
For the next year, the provider of systems engineering and supply-chain management said it expects diluted per-share profit from continuing operations to rise 8 percent to 14 percent and revenue growth excluding acquisitions in the range of 3 percent to 6 percent.
In a statement, the company said the timing of contract decisions was 'uncertain.'
Pacific Crest Securities analyst Erik Olbeter said new business awards in the fourth quarter, which totaled $1.6 billion, was short of his expectations and showed the slowdown in government spending in intelligence was 'far more acute than anyone expected.'
'SAIC's intelligence business is clearly suffering from significant contract delays,' Olbeter said.
SAIC's customers include the Department of Defense and Homeland Security among others in the intelligence community.
SAIC, which named former BAE Systems Plc executive Walt Havenstein chief executive last year, previously said its long-term goals included diluted per share earnings growth of 11 percent to 18 percent.
Olbeter said the company was expected to reset its long-term growth goals and focus more on organic growth.
Net income came to $123 million, or 31 cents a share, for the fourth quarter ended Jan. 31, up from $120 million, or 29 cents a share, a year earlier.
Analysts expected profit of 32 cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 7 percent to $2.68 billion, compared with $2.69 billion expected by analysts.
The company posted results after markets closed. SAIC shares were down 6 percent after hours from their close of $18.98 on the New York Stock Exchange.
(Reporting by Karen Jacobs; editing by Andre Grenon) Keywords: SAIC/ (Reuters Messaging: karen.jacobs.reuters.com@reuters.net; +1 404 493 3656) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
For the next year, the provider of systems engineering and supply-chain management said it expects diluted per-share profit from continuing operations to rise 8 percent to 14 percent and revenue growth excluding acquisitions in the range of 3 percent to 6 percent.
In a statement, the company said the timing of contract decisions was 'uncertain.'
Pacific Crest Securities analyst Erik Olbeter said new business awards in the fourth quarter, which totaled $1.6 billion, was short of his expectations and showed the slowdown in government spending in intelligence was 'far more acute than anyone expected.'
'SAIC's intelligence business is clearly suffering from significant contract delays,' Olbeter said.
SAIC's customers include the Department of Defense and Homeland Security among others in the intelligence community.
SAIC, which named former BAE Systems Plc executive Walt Havenstein chief executive last year, previously said its long-term goals included diluted per share earnings growth of 11 percent to 18 percent.
Olbeter said the company was expected to reset its long-term growth goals and focus more on organic growth.
Net income came to $123 million, or 31 cents a share, for the fourth quarter ended Jan. 31, up from $120 million, or 29 cents a share, a year earlier.
Analysts expected profit of 32 cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 7 percent to $2.68 billion, compared with $2.69 billion expected by analysts.
The company posted results after markets closed. SAIC shares were down 6 percent after hours from their close of $18.98 on the New York Stock Exchange.
(Reporting by Karen Jacobs; editing by Andre Grenon) Keywords: SAIC/ (Reuters Messaging: karen.jacobs.reuters.com@reuters.net; +1 404 493 3656) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.