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Cautious Fiscal 2015 Guidance from CACI - Analyst Blog

By: Zacks.com
Posted: 6/26/2014 10:50:00 AM
Referenced Stocks: CARB;CACI;EBIX;INOD

Technical service provider CACI International Inc . ( CACI ) 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 Ebix Inc . ( EBIX ), Innodata Inc . ( INOD ) and Carbonite, Inc . ( CARB ), each carrying a Zacks Rank #1 (Strong Buy).


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