Science Applications International Corp. (SAIC)

Science Applications International Corp (SAIC) stock dropped by 9.98% due to its fourth-quarter earnings report. The company's transition period, including expenses related to its CEO transition, impacted its bottom line, leading to investor concerns and the sell-off of its shares.

• Financial Results and Expectations: SAIC, a defense tech specialist, reported earnings of $1.43 per share for the fiscal fourth quarter, falling short of the $1.47 consensus estimate. However, its revenue of $1.74 billion surpassed the $1.64 billion estimate. The company attributed the bottom-line miss to higher costs related to stock-based compensation and reorganization expenses.
• CEO Transition and Future Outlook: Last spring, SAIC announced the retirement of its then-CEO, Nazzic S. Keene, and the appointment of Toni Townes-Whitley as the new CEO, effective in October. Whitley expressed confidence in the company's potential for growth, stating that investments made in fiscal year 2025 would accelerate value creation for stakeholders.