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CACI Secures Naval Contract - Analyst Blog
Recently, CACI International Inc. ( CACI ) declared that it has won a task order of $21.5 million from Naval Sea Systems Command (NAVSEA). Per the contract, the company will continue to provide its advanced technical and engineering support services to the Naval Shipyard Training and Education Program (NSTEP). The contract includes one base year followed by two option years. In addition, the contract given to CACI International is an extension of the previously received Seaport II Enhanced contract vehicle.
As per the task order, CACI International will be engaged in providing its support solutions to the facilities of Naval Sea Systems Command, Naval Shipyards and Navy maintenance in the United States and Japan. Since 1992, the company is providing several services including managerial solutions, workforce and organizational development services and various technical and managerial support services to NAVSEA. This contract will further strengthen the existing association between CACI International and NAVSEA.
According to management, CACI's expert services along with the latest processes and concepts are expected to be highly profitable for NAVSEA. The company's support solutions are likely to augment the efficiency of NAVSEA systems in the future. In addition, this deal will not only increase CACI International's expertise in IT enterprise solutions but also strengthen its existing association with the U.S. Government.
Contract wins have forever been the strength of 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. These help the company to retain its formidable position in the industry even when the global fiscal scenario appears grim.
CACI International's system integration skills and intelligence expertise consume a significant portion of the funds earmarked by the Department of Homeland Security. We believe the company is comfortably positioned, given its strong relationship with the Department of Defense (DoD). The company, however, should not become complacent with its positives as it faces stiff competition largely from its main competitors ManTech International Corporation ( MANT ) and SAIC, Inc. ( SAI ).
The current Zacks Consensus Estimates for CACI International Inc. are $1.50 and $6.64 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 11.73% 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.
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