SRA International cuts profit, sales outlook

FAIRFAX, Va. - SRA International Inc., a consultant to companies and government organizations, on Thursday lowered its full-year earnings forecast below Wall Street expectations because of weak results in the December quarter.

The company now expects to earn 94 cents to $1 per share for the fiscal year ending in June, down from an earlier forecast of $1.12 to $1.22 per share. SRA also cut its revenue outlook to a range of $1.51 billion and $1.54 billion, from an earlier forecast between $1.54 billion and $1.60 billion.

Analysts surveyed by Thomson Reuters had expected the company to earn $1.14 per share on sales of $1.57 billion for the fiscal year.

The company said the lowered expectations reflected its weak fiscal second-quarter performance and lower expectations for its global clinical development business, which involves advising pharmaceutical companies on clinical trials and regulatory issues. It also cited continuing delays in military orders.

The economic downturn has caused many drug companies to scale back their R&D spending, and military budgets are uncertain amid the current political transition.

In the quarter ended Dec. 31, the second in its fiscal year, SRA reported earning $10.8 million, or 19 cents per share, down from $18 million, or 30 cents per share, a year earlier. Analysts were expecting the company to earn 26 cents per share.

Shares of SRA rose 54 cents, or 3.3 percent, to close earlier at $16.73.

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