CACI International Inc.
) declared that it has won a $247 million contract from U.S. Army's
Communications-Electronics Research, Development and Engineering
Per the contract, CERDEC has chosen CACI International as one of
two key service providers for controlling its Command, Power, and
Integration Directorate's (CP&ID) rapid prototyping and
technology insertion programs. The contract pertains to indefinite
delivery and indefinite quantity stipulations with one base year
followed by four option years.
With the agreement, the company will be able to strengthen its
foothold in the command, control, communications, computers,
intelligence, surveillance, and reconnaissance (C4ISR) market.
Services entailed in the contract include prototyping and
integrating C4ISR systems through utilizing U.S. Armed Forces;
employing new Army/Joint mission command/command and control models
and techniques through extensive research. CACI International shall
also be providing its specialized technological services for
generating convenient and cost-effective power technologies. The
tasks will be executed in the units of CACI and CERDEC at Aberdeen
Proving Ground based in Maryland.
This contract will not only proliferate CACI International's
expertise in IT enterprise solutions but also ossify its existing
association with CERDEC and other Army C4ISR institutions.
Management averred that CACI International's state-of-the-art
technological support and the urge to continuously re-innovate its
field of expertise are attributes that make CACI International the
best option for the contract. The contract is also expected to
strengthen the company's presence in the C4ISR market.
Contract wins have forever been the key strength for CACI
International. The company's contract funding orders surged almost
3.4% annually and 12.6% sequentially to reach $901.1 million for
the fourth quarter of fiscal 2012. The flow of contracts helps the
company retain its formidable position in the industry.
CACI International competes primarily in the government IT
services arena, which, like other government sectors, consists of
many competitors of various sizes. Its main competitors include:
CGI Group, Inc.
ManTech International Corporation
), all of whom are strong rivals with their own particular
The current Zacks Consensus Estimates for CACI International
Inc. are $1.50 and $6.63 per share for the first quarter of fiscal
2013 and fiscal 2013 (ending June 30, 2013), respectively. The
estimates represent a year-over-year growth of 6.79% for the first
quarter and 11.67% 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'
CACI INTL A (CACI): Free Stock Analysis Report
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