Science Applications International Corp., (SAIC Inc.) (NYSE: SAI) reported mixed fiscal fourth-quarter results late on Tuesday and provided cautious guidance on the current fiscal year; however, shares leaped about 4.20% in aftermarket hours after the multi industry solution provider announced a special dividend of $1 a share.
The Mclean VA based Company expects adjusted or non-GAAP earnings of $1.16 to $1.33 a share on revenue of $10 billion to $10.7 billion for the fiscal 2014 while analysts polled by FactSet Research had a consensus estimate for earnings of $1.27 a share on revenue of $10.81 billion.
The Company expects cut back in defense spending by the federal government.
For the fiscal fourth quarter which ended January 31, SAIC reported net income of $186 million or 54 cents a share compared to a loss of $161 million or 49 cents a share, in the year earlier quarter. Analysts’ consensus estimate was for earnings of 52 cents a share.
Revenue during the period rose to $2.71 billion from $2.47 billion, in the same quarter of last year, which was in-line with Street’s consensus estimate. Excluding adjustments, revenue and operating income fell, the company said.
The Company also said that it will split its business in two separate divisions. While one division will focus on national security, the other one will manage government services. Speaking to analysts in earnings call, Chairman and CEO John P. Jumper, said that the company was on course to separate its business, later during the year.
SAIC also announced a special dividend of $1 a share, payable on June 28 to shareholders as of record June 14. In addition, the Company also declared a quarterly dividend of 12 cents a share payable on April 20 to shareholders as of record on April 15.