NCI Inc.

NCI, Inc.(NCIT - Snapshot Report) continues to top analyst forecasts and recently announced record earnings and revenue. Shares are trading at solid valuations and the company released bullish guidance for 2009.

Company Description

NCI, Inc. is a leading provider of information technology services and solutions to U.S. federal government agencies. NCI's award-winning expertise encompasses areas critical to its customers' mission objectives including enterprise systems management, information assurance, network engineering, and systems development and integration.

Record Third Quarter

On Nov 3 NCI beat Wall Street's earnings estimates once again, reporting a record-high 32 cents per share, 2 cents higher than the consensus estimate. This was the ninth consecutive earnings surprise for the company.

Revenues came in at another record mark of $101.1 million, a 19% gain on a year-over-year basis. Net income of $4.4 million surged past last year's mark of $3.3 million.

CEO Offers Bullish Guidance

CEO and Chairman, Charles Narang said "We continue to execute our strategic plan of aggressively focusing on organic growth augmented with strategic acquisitions that create long-term sustainable value. We are confident in our business model and believe that we are well positioned in our markets and with our customers as we head into 2009."

Excellent Growth

Full-year estimates have been climbing for the past few months and are now $1.23 for 2008 and $1.44 for 2009. These forecasts call for 33% growth this year and another 17% in 2009.

The long-term projected growth rate is currently 19%, which combined with a P/E of 23 times earnings, yields a PEG ratio of 1.1.

The Chart

Shares of NCIT have developed a nice trend over the past few months but are experiencing some resistance near $29. If stocks continue to consolidate, look for a convincing breakout. Take a look at the chart below.