CACI CACI International Inc

CACI International Inc. (CACI) reported earnings of $1.28 per share in the fourth quarter of fiscal 2011, beating the Zacks Consensus Estimate of $1.17.

The company noted that the solid results were due to its growth strategy, operational excellence, opportunities provided by developing markets and new contract wins.

Fourth Quarter Earnings Highlights

The company reported revenues of $963.2 in the fourth quarter of fiscal 2011, up 13.5% year over year. The year-over-year revenue growth includes an organic revenue increase of 11.5%.

In terms of customer mix, the Department of Defense accounted for 81.0% of total revenue and Federal Civilian Agencies for 14.4% of total revenue. Commercial customers are responsible for 4.2% of total revenue while State Local Governments contributed 0.4% of total revenue.

Including one-time items, earnings per share (EPS) came in at $1.44 compared with $0.96 in the year-ago quarter.

Fiscal 2011 Highlights

Revenues improved 13.6% from the previous year to $3.6 billion, driven by C4ISR Solutions and Services core competency.

Excluding one-time items, earnings per share were $4.41 compared with $3.43 in the previous year.

Agreements of Analysts

In the last 30 days, fiscal 2012 earnings estimates were raised by 14 analysts out of the 15 covering the stock, while 1 had lowered the same.

None of the analysts changed his/her earnings estimate for fiscal 2012 over the last 7 days.

The current Zacks Consensus Estimate for fiscal 2012 is $4.88, representing a year-over-year increase of estimated 9.59%. 

Magnitude of Estimate Revisions

Earnings estimate for fiscal 2012 increased 21 cents to $4.88, based on strong results for the fourth quarter of fiscal 2011 and upgraded guidance for fiscal 2012.

CACI International raised its guidance for FY12; the improved guidance is attributed to the expectation of stronger operating performance and the acquisition of Pangia Technologies. Net income is expected around $147 million and $153 million, up from the previous guidance of $144 million and $150 million. Earnings per share are estimated between $4.70 and $4.90, up from the initial forecast of $4.60 and $4.80.

Our Take

We believe that CACI’s long-term growth will be driven both organically and through acquisitions. Furthermore, the company’s aggressive acquisition strategy and new contract wins will expand its scale of operations.

In an effort to strengthen its cybersecurity capabilities, the company proposed to acquire Paradigm Holdings Inc. The Pangia Technologies acquisition is expected to open new growth opportunities for CACI and fortify its technical offerings in the area of cybersecurity.

Management is also keen to increase shareholder wealth through share repurchases. The company recently replaced its $175 million share repurchase authorization by a new repurchase authorization for 4 million shares.

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

About Earnings Estimate Scorecard

Len Zacks, PhD in mathematics from MIT, proved over 30 years ago that earnings estimate revisions are the most powerful force impacting stock prices. He turned this ground breaking discovery into two of the most celebrating stock rating systems in use today. The Zacks Rank for stock trading in a 1 to 3 month time horizon and the Zacks Recommendation for long-term investing (6+ months). These “Earnings Estimate Scorecard” articles help analyze the important aspects of estimate revisions for each stock after their quarterly earnings announcements. Learn more about earnings estimates and our proven stock ratings at http://www.zacks.com/education/

 
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