Government contractor Science Applications International Corp.’s sales for the fiscal first quarter rose about 6% while its profit shrank from a year earlier on rising costs.
The information-technology services provider posted net income for the quarter ended April 29 of $73 million, down from $81 million a year ago. Per-share earnings were $1.29, compared with $1.38 a year earlier. The company cited higher indirect costs in the recently ended period.
Stripping out the effects of acquisitions and other one-time items, the company’s adjusted earnings were $1.88 a share. Analysts surveyed by FactSet were looking for adjusted earnings of $1.77 a share.
Revenue rose to $2 billion from $1.88 billion in the year-ago quarter, due in part to ramp up on new and existing contracts as well as an acquisition, the company said. Analysts surveyed by FactSet expected sales of $1.93 billion.
Stripping out the effects of acquisitions, revenue rose 3.9%. Cost of revenues rose about 6.5%, to $1.77 billion.