CACI CACI International Inc

CACI International Inc. (CACI) is scheduled to announce its fourth quarter and fiscal 2011 results on Wednesday, August 17, 2011.

The company has consistently exceeded expectations. On an average, CACI has beaten the Zacks Consensus Estimate by 7.94% in the last four quarters. 

Third-Quarter Recap    

CACI International posted earnings per share (EPS) of $1.16 compared with 87 cents in the year-earlier quarter, which easily beat the Zacks Consensus Estimate of $1.03.

Revenues came in at $913.4 in the third quarter of fiscal 2011, up 16.5% year over year, attributable to continued growth in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance Integration Services and Business System Solutions core competencies.

Agreement of Estimate Revisions  

Estimates for the fourth quarter and fiscal 2011 have been largely static. Out of a total of 16 analysts covering the stock, two analysts changed  their estimates over the last 30 days (in the upward direction) while others maintained their estimates.

The current Zacks Consensus Estimate for fiscal 2011 is $4.34, representing an estimated 24.98% year-over-year increase.  

Magnitude of Estimate Revisions 

In the last thirty days, the Zacks Consensus Estimate for 2011 was up by a penny. Estimate for the fourth quarter of fiscal 2011 was also at $1.17 per share, reflecting a year-over-year growth of 22.27%.

The company projected its earnings per share estimate of $4.25 – $4.40 for fiscal 2011, up from the previous estimate of $4.15 and $4.30.

For fiscal 2012, CACI expects earnings per share between $4.60 and $4.80.

Our Take   

We believe that the company’s recent acquisition of Paradigm Holdings Inc. will strengthen its cybersecurity capabilities. The company is heading toward providing integrated solutions for cyber operations and enterprise IT/security engineering.

Furthermore, management is also keen to increase shareholder wealth through share repurchases. CACI International stepped up its share repurchase program by approving a new $175 million repurchase program.

We believe that CACI’s growth will be driven both organically and through acquisitions. Moreover, we are confident about CACI’s recent acquisition activities; new contract wins and share repurchase programs.

Thus, we maintain our long-term Outperform recommendation on the stock, supported by a Zacks #2 Rank, which translates into a Buy rating.

 
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