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CACI International (CACI) Beats Q4 Earnings, Offers Guidance

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CACI International (CACI - Free Report) reported better-than-expected fourth-quarter fiscal 2017 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.

GAAP earnings for the reported quarter were $44.2 million or $1.76 per share compared with $43.6 million or $1.75 per share in the prior-year quarter. GAAP earnings per share comfortably beat the Zacks Consensus Estimate of $1.64. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.

Quarterly revenues were $1,137.4 million compared with $1,113.9 million in the year-ago quarter, driven primarily by increase in revenues from the Department of Defense. The reported revenues exceeded the Zacks Consensus Estimate of $1,088 million.

For fiscal 2017, the company reported earnings of $163.7 million or $6.53 per share compared with $142.8 million or $5.76 per share in the prior year. Revenues for the year were $4,354.6 million compared with $3,744.1 million in the year-ago period, due to the National Security Solutions acquisition.

Other Significant Details

Contract awards in the reported quarter were $1.1 billion and $6 billion for the year, of which approximately 60% accounted for new businesses for CACI International. Contract funding orders were $1.1 billion in the quarter and $4.1 billion for the year. Total backlog as of Jun 30, 2017, increased 1.9% to $11.2 billion from $11.0 billion at the end of fiscal 2016. Funded backlog in Jun 30, 2017 was $1.9 billion.

In terms of customer mix, the Department of Defense accounted for about 66.1% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 27.9% while Commercial and other customers accounted for 6% of revenues.

Balance Sheet and Cash Flow

At the fiscal year end, CACI International had cash and cash equivalents of $66.5 million with long-term debt (net of current portion) of $1,177.6 million.

Net cash from operations for fiscal 2017 was $281.3 million compared with $242.6 million a year ago.

CACI International, Inc. Price, Consensus and EPS Surprise

 

CACI International, Inc. Price, Consensus and EPS Surprise | CACI International, Inc. Quote

Guidance

CACI International provided guidance for fiscal 2018 on improved growth dynamics. Revenues are expected in the range of $4,350-$4,500 million. Net income is expected in the range of $165-$173 million, resulting in earnings per share of $6.52-$6.84. 

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 carries a Zacks Rank #2 (Buy). Other stocks in the industry worth a glance include, LogMeIn, Inc. , Syntel, Inc. and ManTech International Corporation . All three stocks carry the same Zacks Rank as CACI International. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LogMeIn has long-term earnings growth expectations of 17.5% and is currently trading at a forward P/E of 37.06x.

Syntel has long-term earnings growth expectations of 9.3% and is currently trading at a forward P/E of 10.83x.

ManTech has long-term earnings growth expectations of 8% and is currently trading at a forward P/E of 26.02x.

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