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CACI International (CACI) Beats Q1 Earnings, Maintains View
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Information technology services provider CACI International Inc. (CACI - Free Report) started fiscal 2017 with a bang as it reported strong first-quarter 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. In addition, CACI International won significant awards across all markets, which are further expected to drive growth in six of its eleven market areas in the forthcoming quarters.
GAAP earnings for the reported quarter were $36.7 million or $1.47 per share compared with $34.6 million or $1.40 per share in the prior-year quarter. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.
On a non-GAAP basis, first-quarter fiscal 2017 earnings were $2.07 per share, up from $1.87 in the year-earlier quarter. Adjusted earnings (excluding stock-based compensation expenses) for the reported quarter were $1.95 per share, which comprehensively beat the Zacks Consensus Estimate of $1.26.
Quarterly revenues were up 30.5% year over year to $1,073.3 million largely due to the positive contribution from the accretive acquisition of National Security Solutions (NSS). The reported revenues exceeded the Zacks Consensus Estimate of $1,017 million.
Other Significant Details
Contract awards in the reported quarter were $1.9 billion, out of which approximately 20% accounted for new businesses for CACI International. Contract funding orders were $1.2 billion, up 3% year over year. Total backlog as of Sep 30, 2016 was $11.5 billion with a funded backlog of $2.4 billion.
In terms of customer mix, the Department of Defense accounted for about 64.5% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 29.2%, while Commercial and other customers accounted for 6.3% of revenues.
Operating income aggregated $69.7 million in the reported quarter compared with $64.5 million in the year-ago quarter. The increase in operating income was driven by higher revenues. Adjusted earnings before interest, taxes, depreciation and amortization increased to $88.2 million from $79.3 million in the year-ago quarter.
Balance Sheet and Cash Flow
At quarter end, CACI International had cash and cash equivalents of $49.7 million with long-term debt (net of current portion) of $1,344.7 million.
Net cash from operations for the quarter was $57.8 million compared with $79.3 million in the year-ago period.
Guidance Reiterated
CACI International reiterated its earlier guidance for fiscal 2017. For fiscal 2017, revenues are expected in the range of $4,050 million–$4,250 million. Net income is expected in the range of $150 million–$160 million, resulting in earnings per share in the range of $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.
LogMeIn has a long-term earnings growth expectation of 22.5% and is currently trading at a forward P/E of 95.5x.
Accenture has a long-term earnings growth expectation of 10.1% and is currently trading at a forward P/E of 19.5x.
Carbonite has a long-term earnings growth expectation of 30.0% and is currently trading at a forward P/E of 111.1x.
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CACI International (CACI) Beats Q1 Earnings, Maintains View
Information technology services provider CACI International Inc. (CACI - Free Report) started fiscal 2017 with a bang as it reported strong first-quarter 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. In addition, CACI International won significant awards across all markets, which are further expected to drive growth in six of its eleven market areas in the forthcoming quarters.
GAAP earnings for the reported quarter were $36.7 million or $1.47 per share compared with $34.6 million or $1.40 per share in the prior-year quarter. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.
On a non-GAAP basis, first-quarter fiscal 2017 earnings were $2.07 per share, up from $1.87 in the year-earlier quarter. Adjusted earnings (excluding stock-based compensation expenses) for the reported quarter were $1.95 per share, which comprehensively beat the Zacks Consensus Estimate of $1.26.
CACI INTL A Price, Consensus and EPS Surprise
CACI INTL A Price, Consensus and EPS Surprise | CACI INTL A Quote
Quarterly revenues were up 30.5% year over year to $1,073.3 million largely due to the positive contribution from the accretive acquisition of National Security Solutions (NSS). The reported revenues exceeded the Zacks Consensus Estimate of $1,017 million.
Other Significant Details
Contract awards in the reported quarter were $1.9 billion, out of which approximately 20% accounted for new businesses for CACI International. Contract funding orders were $1.2 billion, up 3% year over year. Total backlog as of Sep 30, 2016 was $11.5 billion with a funded backlog of $2.4 billion.
In terms of customer mix, the Department of Defense accounted for about 64.5% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 29.2%, while Commercial and other customers accounted for 6.3% of revenues.
Operating income aggregated $69.7 million in the reported quarter compared with $64.5 million in the year-ago quarter. The increase in operating income was driven by higher revenues. Adjusted earnings before interest, taxes, depreciation and amortization increased to $88.2 million from $79.3 million in the year-ago quarter.
Balance Sheet and Cash Flow
At quarter end, CACI International had cash and cash equivalents of $49.7 million with long-term debt (net of current portion) of $1,344.7 million.
Net cash from operations for the quarter was $57.8 million compared with $79.3 million in the year-ago period.
Guidance Reiterated
CACI International reiterated its earlier guidance for fiscal 2017. For fiscal 2017, revenues are expected in the range of $4,050 million–$4,250 million. Net income is expected in the range of $150 million–$160 million, resulting in earnings per share in the range of $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 #3 (Hold). Some better-ranked stocks in the industry include LogMeIn, Inc. , Accenture plc (ACN - Free Report) and Carbonite, Inc. , each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LogMeIn has a long-term earnings growth expectation of 22.5% and is currently trading at a forward P/E of 95.5x.
Accenture has a long-term earnings growth expectation of 10.1% and is currently trading at a forward P/E of 19.5x.
Carbonite has a long-term earnings growth expectation of 30.0% and is currently trading at a forward P/E of 111.1x.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>