Markets

CACI International (CACI) Beats Q2 Earnings, Guides Up

Information technology services provider CACI International Inc.CACI reported strong second-quarter fiscal 2017 results with healthy year-over-year increase in both earnings and revenues. The company benefited from increased material purchases, accelerated contract modifications, and admirable contract performance.

GAAP earnings for the reported quarter were $42.4 million or $1.69 per share compared with $30.5 million or $1.23 per share in the prior-year quarter. GAAP earnings per share comprehensively beat the Zacks Consensus Estimate of $1.42. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.

On adjusted basis, second-quarter fiscal 2017 earnings were $2.30 per share, up from $1.72 in the year-earlier quarter.

Quarterly revenues were $1,057.5 million compared with $830.4 million in the year-ago quarter, driven primarily by revenues of $260 million from the National Security Solutions (NSS) acquisition. The reported revenues exceeded the Zacks Consensus Estimate of $1,025 million.

Other Significant Details

Contract awards in the reported quarter were $1.6 billion, of which approximately 85% accounted for new businesses for CACI International. Contract funding orders were $752 million in the quarter. Total backlog as of Dec 31, 2016 was $11.6 billion with a funded backlog of $2 billion.

In terms of customer mix, the Department of Defense accounted for about 64.8% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 29.1%, while Commercial and other customers accounted for 6.1% of revenues.

Balance Sheet and Cash Flow

At quarter end, CACI International had cash and cash equivalents of $72.7 million with long-term debt (net of current portion) of $1,292.3 million.

Net cash from operations for the first six months of fiscal 2017 was $135.4 million compared with $135.6 million in the year-ago period.

CACI International, Inc. Price, Consensus and EPS Surprise

CACI International, Inc. Price, Consensus and EPS Surprise | CACI International, Inc. Quote

Guidance Raised

CACI International raised its earlier guidance for fiscal 2017 on improved growth dynamics. Revenues are expected in the range of $4,150-$4,300 million (earlier expectation was $4,050 million-$4,250 million). Net income is expected in the range of $155-$162 million (earlier expected range was $150 million-$160 million), resulting in earnings per share of $6.18-$6.45 (earlier expectation was $5.98-$6.37).

Moving ahead, CACI International expects to diligently focus on its operating plans to reward shareholders with attractive risk-adjusted returns. The company remains confident about its competitive position and continued ability to meet customer requirements through the delivery of innovative, affordable solutions and services.

CACI International currently has a Zacks Rank #2 (Buy).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Other Stocks to Consider

Some other favorably ranked stocks in the space include Barracuda Networks, Inc. CUDA , Science Applications International Corporation SAIC and SecureWorks Corp. SCWX . All three stocks carry the same Zacks Rank as CACI.

Barracuda has long-term earnings growth expectations of 21.31% and is currently trading at a forward P/E of 67.11x.

SecureWorks has long-term earnings growth expectations of 25% and it beat estimates twice in the trailing four quarters with an average positive surprise of 34.21%.

Science Applications has long-term earnings growth expectations of 5% and is currently trading at a forward P/E of 24.20x.

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CACI International, Inc. (CACI): Free Stock Analysis Report

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report

Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report

SecureWorks Corp. (SCWX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SCWX CACI SAIC

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More