Technical service provider
CACI International Inc
) recently reiterated its fiscal 2014 guidance and provided a
cautious outlook for fiscal 2015, primarily due to reduced
government spending and delays in contract awards.
CACI maintained its revenue outlook of $3.5 billion and $3.6
billion for fiscal 2014. For fiscal 2015, CACI expects revenue to
be between $3.3 billion and $3.6 billion. The lower fiscal 2015
guidance reflects uncertainty with regard to federal spending and
lower run-rates on professional services contracts.
For fiscal 2015, the company expects net income to be in the range
of $125 million and $135 million and earnings per share to be in
the range of $5.10-$5.51. Direct labor costs are expected to be
4%-7 % higher year over year coupled with higher indirect cost and
selling expense in the 2%-4% range. Higher expenses coupled with
even operating margins year over year are likely to impact the
profitability of the company in fiscal 2015.
Nevertheless, CACI intends to expand in new markets, increase new
business developments, drive operational excellence and continue
with its acquisitions. Furthermore, the company is looking forward
to the successful integration of Six3 Systems to increase its
market share and create long-term value for its shareholders.
Based in Arlington, VA, CACI delivers 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.
CACI currently has a Zacks Rank #3 (Hold). Other stocks that look
promising and are worth considering in the industry include
), each carrying a Zacks Rank #1 (Strong Buy).
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