Engineering company SAIC Inc. said Tuesday its third-quarter profit rose on higher revenue and cost cuts, but warned that next year's earnings per share will fall at the low end of the company's target range.
The company said it earned $135 million, or 34 cents per share, in the quarter ended Oct. 31, just topping analysts' 33-cent average estimate, according to a Thomson Reuters poll. A year ago, it earned $120 million, or 29 cents per share.
Revenue rose 5 percent to $2.77 billion, but came in below analysts' forecast of $2.83 billion.
CEO Walt Havenstein said internal growth was lower due to fewer new contracts and the effects of the acquisition of R.W. Beck Group, an engineering consulting firm. Net new bookings totaled $3 billion in the third quarter.
SAIC said results for the fiscal year ending in January will be consistent with current goals including an increase in earnings per share from continuing operations of 11 percent to 18 percent, and internal revenue growth of 6 percent to 9 percent.
But it said results in its fiscal 2011 year, which starts Feb. 1, will fall at the low end of those ranges due to budgetary pressure on the federal government.
The company performs work for the federal Defense and Homeland Security departments and intelligence agencies.
Shares of SAIC closed unchanged at $18.04, but then fell 39 cents, or 2 percent, to $17.65 in extended trading after the report was released.