CACI Int'l Raises Guidance

Yesterday, CACI International Inc. (CAI), a leading professional services and information technology provider to the federal government, raised its guidance for FY2009 and issued guidance for 2010.

For FY2009, the company expects revenues to come between $2.6 billion and $2.7 billion, same as the earlier estimate. Net income is now expected to be between $94.1 million and $96.3 million, compared to the previous forecast of between $90.0 million and $93.0 million. Consequently, EPS is now projected to come between $3.09 and $3.16, up from the earlier estimate of EPS between $2.95 and $3.05.

Management stated that continued strong performance in the U.S. and better-than-expected performance in the U.K. impelled the raise in guidance.

Management also issued guidance for FY2010. CACI expects revenues between $2.8 billion and $2.9 billion. Net income is estimated to come between $97.8 million and $103.9 million. EPS is projected between $3.20 and $3.40, assuming a diluted share count of 30.6 million. Cash flow from operations is forecasted to be approximately $130 million.

The company stated that it obtained a record level of awards and contract funding orders in 2009, which has created a record backlog that will form the base for a strong FY2010. Both the U.S. and U.K. are expected to demonstrate solid results.

In the long run, prospects for CACI remain strong. The trend towards outsourcing by the federal government to modernize mission-critical information systems remains intact. CACI provides the critical IT infrastructure for the Department of Defense (DoD) and the Department of Homeland Security.

CACI continues to make acquisitions to bolster its expertise in these critical areas. Management expects to generate revenues of $5 billion by 2012, derived from both organic growth and acquisitions. We remain positive about CACI's long-term prospects and maintain a Buy on the stock. 

Read the full analyst report on CAI