CACI International Inc.
(
CACI
) recently concluded its acquisition of Delta Solutions and
Technologies Inc., commenced its 4 million share buyback program,
issued an impressive fiscal 2013 guidance and won important
contracts. The Virginia-based company also delivered a 2.1%
earnings surprise in the fiscal third quarter 2012. With a
price-to-sales (P/S) ratio of just 0.4, this Zacks #1 Rank (Strong
Buy) stock presents a true value option for investors.
Driving Catalysts
On May 2, CACI International reported fiscal third quarter 2012
(ended March 31, 2012) earnings per share of $1.45, beating the
Zacks Consensus Estimate by 3 cents. This also represents a
year-over-year increase of 37%.
Net sales increased 1.6% year over year due to a 23.1% rise in
revenue from Federal Civilian Agencies. Operating margin expanded
100 basis points, primarily stemming from the 23.3% annual rise in
operating income evolving from a direct labor boost. Total backlog,
at the end of fiscal third quarter 2012, rose 10.3% over the
year-ago period to $7.65 billion.
New contracts were recently awarded by important customers,
including twin task orders worth $72 million by the U.S. Department
of Justice and a prime position in a $20 billion contract to
augment Government-Wide Transformation.
CACI International is progressing well with its share buybacks,
having repurchased roughly 1.3 million shares for an average price
of $50.56 per share. Plus, the addition of Delta Solution has
enhanced CACI's position in the business system solutions and
government transformation arenas.
Bright Guidance
For fiscal 2012, CACI International anticipates diluted earnings
per share between $5.80 and $6.01. The company looks forward to
sustaining a healthy performance in fiscal 2013 as well. It expects
net revenues of $3.8 billion to $4.0 billion and earnings per share
between $6.60 and $6.90, reflecting a 14.3% mid-point growth over
fiscal 2012.
Estimates Moving Higher
In the last 60 days, the Zacks Consensus Estimate for fiscal 2012
inched up 1% to $5.88 while the estimate for fiscal 2013 went up by
18% to $6.63. These also reflect year-over-year growth of 32.04%
for 2012 and 12.82% for 2013.
A Value Play
The chart below clearly shows how the stock is back on the recovery
path after a plunge. Moreover, the Zacks Consensus Estimate remains
on a rising scale in the years ahead.
In addition to a low P/S, CACI International is currently trading
at a forward P/E multiple of 8.49 and a P/B multiple of 1.20. (A
P/S ratio lower than 1.0, a P/E below 15.0 and a P/B ratio under
3.0 generally indicate value.)
Headquartered in Arlington, Virginia, CACI International was
incorporated in 1962. The company specializes in providing IT
applications and infrastructure to improve communications and
secure the integrity of information systems and networks, enhance
data collection and analysis, and increase efficiency and mission
effectiveness.
The company generates revenue, primarily through Department of
Defense (DoD), Federal Civilian Agencies, Commercial and Other and
State and Local Governments.
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(
WOR
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CACI INTL A (CACI): Free Stock Analysis Report
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