SRA lowers earnings guidance

SRA International has lowered its earnings expectations for its March quarter, citing a rise in bid and proposal expenses.

The integrator said it generated diluted earnings per share of $0.29 in the quarter, excluding stock option expense. The company’s original guidance range was $0.31 to $0.32. The company attributed the lower-than-anticipated earnings to a “heavier than expected influx” of government requests for proposals, which in turn prompted a higher investment in bid and proposal activities.

SRA also cited a decision to perform work for a long-term customer in advance of expected funding. The company said it now does not expect to recover its incurred costs.

SRA’s March quarter revenue is expected to be about $296 million, in line with the lower end of the original guidance range of $296 million to $301 million. The revenue number represents 31 percent year-over-year growth. SRA will announce March quarter earnings on May 1.

SRA also lowered revenue and earnings expectations for its fourth quarter and its full fiscal year, both of which end June 30.

The company said it expects fourth quarter revenue to range between $296 million and $306 million, with diluted earnings per share between $0.30 and $0.32, excluding stock option expense. The company originally anticipated revenue of $301 million to $308 million and diluted earnings per share of $0.34 to $0.35. The company said its new guidance reflects the continued high tempo of bid and proposal activities.

SRA anticipates full fiscal 2006 revenue from $1.178 billion to $1.188 billion, representing 34 percent to 35 percent growth year-over-year. The company estimated its fiscal 2006 diluted earnings per share to range between $1.18 and $1.20, excluding stock option expense. The company’s original estimate was for full year revenue of $1.183 billion to $1.195 billion and diluted earnings per share of $1.24 to $1.26.

FCW in Print

In the latest issue: Looking back on three decades of big stories in federal IT.


  • Anne Rung -- Commerce Department Photo

    Exit interview with Anne Rung

    The government's departing top acquisition official said she leaves behind a solid foundation on which to build more effective and efficient federal IT.

  • Charles Phalen

    Administration appoints first head of NBIB

    The National Background Investigations Bureau announced the appointment of its first director as the agency prepares to take over processing government background checks.

  • Sen. James Lankford (R-Okla.)

    Senator: Rigid hiring process pushes millennials from federal work

    Sen. James Lankford (R-Okla.) said agencies are missing out on younger workers because of the government's rigidity, particularly its protracted hiring process.

  • FCW @ 30 GPS

    FCW @ 30

    Since 1987, FCW has covered it all -- the major contracts, the disruptive technologies, the picayune scandals and the many, many people who make federal IT function. Here's a look back at six of the most significant stories.

  • Shutterstock image.

    A 'minibus' appropriations package could be in the cards

    A short-term funding bill is expected by Sept. 30 to keep the federal government operating through early December, but after that the options get more complicated.

  • Defense Secretary Ash Carter speaks at the TechCrunch Disrupt conference in San Francisco

    DOD launches new tech hub in Austin

    The DOD is opening a new Defense Innovation Unit Experimental office in Austin, Texas, while Congress debates legislation that could defund DIUx.

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group