Shares of San Diego-based defense contractor SAIC Inc. shed 6% to $18.40 in AH trading Wednesday after the company posted a 25% decline in fiscal Q1 profit on lower interest income and a higher tax rate. The company reported earnings of $80 million ($0.19/share), down from $106 million ($0.31) in the year-ago period. Net income from continuing operations came in at $0.18/share, down from $0.27 a year ago. Revenue was up 5.8% to $2.07 billion from $1.95 billion. Analysts were expecting EPS of $0.20 on revenue of $2.08 billion. The company reiterated its full-year 2008 EPS estimate of $0.83-0.88 from continuing operations and revenue of $8.7-9 billion. SAIC went public in October after 37 years as a private company. Sensitive security work for the U.S. government constitutes approximately 90% of its revenue.
Sources: Press release, MarketWatch, Forbes
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Stocks/ETFs to watch: SAIC, Inc. (SAI). Competitors: Computer Sciences Corp. (NYSE:CSC), Lockheed Martin Corp. (NYSE:LMT)
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