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CACI's Winning Streak Continues, Gets IDIQ $12.1B Contract

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CACI International Inc (CACI - Free Report) has been awarded a five-year contract by the U.S. Army Information Technology Enterprise Solutions-3 Services (ITES-3S), which can be extended up to four more years.

The contract value is capped at $12.1 billion, and requires the company to continue supporting the Enterprise IT, Business Systems and Logistics and Material Readiness areas of the ITES-3S.

It is an indefinite delivery/ indefinite quantity (IDIQ) contract, which will be managed by the Army’s Computer Hardware, Enterprise Software and Solutions program. CACI will be required to provide a wide range of end-to-end enterprise IT services to the aforementioned market areas of the ITES-3S.

CACI Rides High on Contract Wins

The company has been doing very well with a record level of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction.

This is the 10th high-value contract awards received by CACI this year, apart from the numerous high-value task orders.

Last month, the company was awarded two contracts — a $413 million five-year federal contract by the U.S. Army Communications-Electronics Research, Development and Engineering Center, and a $194 million task order to provide IT support to the Transportation Security Administration, under the Department of Homeland Security’s EAGLE II contract vehicle.

Notably, contracts in the last reported quarter were worth $2.54 billion, up a whopping 111% year over year, of which approximately 60% came from new businesses.

CACI has a large pipeline of new projects and continues to win more deals at regular intervals. Notably, as of Sep 30, 2018, its total backlog was $13 billion. These back-to-back contract wins are the key catalysts driving success perennially for the company.

CACI’s strategy of winning high-value contracts, delivering excellence to its customers and deploying its capital for growth is expected to help it achieve newer heights.

Zacks Rank & Other Stocks to Consider

CACI currently has a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks in the broader Computer and Technology sector are Marvell Technology Group Ltd. (MRVL - Free Report) , Synopsys, Inc (SNPS - Free Report) and Stratasys, Ltd (SSYS - Free Report) , each flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Marvell, Synopsys and Stratasys is projected at 9.38%, 10% and 15.75%, respectively.

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