CACI International Inc.
), a leading provider of IT outsourcing services to the U.S.
federal government, recently declared that it has developed new
These newly introduced business units are scheduled to start
functioning from January 1, 2013. The company has formed these
groups with the intention of grasping the increasing growth
prospects in its Federal Civilian and Business Systems markets
worth $72 billion and $8 billion, respectively.
The company's Federal Civilian, advanced Healthcare and
Investigative and Litigation Support and Business Systems
services are improving continuously led by its acquired
businesses and high organic growth. The company recently
completed the acquisition of Emergint Technologies, Inc. Earlier,
in July 2012 the company acquired Delta Solutions and
Technologies, Inc.; and Advanced Programs Group, LLC. in October
2011. These acquisitions are vital in the long run for the
company as these will help fortifying CACI's foothold in the
growing Federal Civilian and Business Systems arena.
Rick Dansey has been chosen by the company to lead Federal
Civilian Solutions business group. He will be engaged in
augmenting the company's business in Federal Civilian,
Healthcare, and Investigative and Litigation Support market
arena. In addition, Valerie Lyons, who played a key role in Delta
acquisition, will be leading the company's Business Systems
Solutions business segments.
Management stated that, owing to the continuous development in
the Federal Civilian/Healthcare/Litigation Support and Business
Systems markets, the company has decided to focus more on these
areas. Hence, by forming these new groups the company has paved
the way for new growth opportunities in these specified sectors.
With this accomplishment, the company will be able to
successfully fulfill its client's needs and provide high return
to its shareholders.
Based in Arlington, Virginia, CACI International has ample
exposure to the rapidly growing Department of Defense and
Department of Homeland Security budgets. CACI International's
system integration skills and intelligence expertise consume a
significant portion of the funds earmarked for the Department of
Homeland Security while creating systems that will foster the
sharing of critical information among all intelligence agencies.
We believe the company is comfortably positioned, given its
favored relationship with the DoD and its strong proposal
However, the company still needs to be wary of its formidable
competitors who include big names such as
CGI Group, Inc.
ManTech International Corporation
). Recently ManTech International and Genex Systems, LLC jointly
received a $23 million from Marine Corps War fighting Laboratory
Per the contract, ManTech International will be engaged in
providing engineering, analytical, technical, and business
support services to MCWL. Hence, CACI should not become too
complacent with its successful business model.
The current Zacks Consensus Estimates for CACI International
Inc. are $1.64 and $6.60 per share for the second quarter of
fiscal 2013 and fiscal 2013 (ending June 30, 2013), respectively.
The estimates represent a year-over-year growth of 8.7% for the
second quarter and 11.1% for fiscal 2013.
At present, we have a Neutral recommendation on CACI
International Inc. The stock currently carries a Zacks #3 Rank,
which translates into a short-term Hold rating.
CACI INTL A (CACI): Free Stock Analysis
CGI GRP INC -A (GIB): Free Stock Analysis
MANTECH INTL -A (MANT): Free Stock Analysis
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