CACI International Beats Estimates

CACI International Inc. (CACI) reported revenues of $848.7 million in the fourth quarter of fiscal 2010, gaining 16.4% year over year and surpassing the Zacks Consensus Estimate of $805 million. 

The growth in revenues was driven by organic growth of 14.3% due to strong performances of the defense and intelligence businesses. 

Contract funding orders in the fourth quarter were $895 million, a 16.0% increase year over year. As of June 30, 2010, total backlog was $6.8 billion, down 12.4% year over year. 

In terms of customer mix, Department of Defense accounted for 78.2% of total revenues. Federal Civilian Agencies accounted for 16.7% of total revenues. Commercial customers accounted for 4.7% of total revenues and State and Local Governments accounted for 0.4% of total revenues.

Net income came in at $29.9 million, an increase of 8.8% from the year-ago quarter driven by solid operating performance, lower interest expense and a lower tax rate. Earnings per share (EPS) came in at 96 cents, compared to 91 cents in the year-earlier quarter. This easily beat the Zacks Consensus Estimate of 93 cents.

Cash flow continues to be strong. During the fourth quarter, CACI International generated $86.4 million of cash from operations, up 52.6% year over year.

For fiscal 2010, revenues came in at $3149.1 million, up 15.3% from a year ago, driven by organic growth of 13.4% that was propelled by strong performances of the defense and intelligence businesses throughout the year. This easily beat the Zacks Consensus Estimate of $3125 million.

Net income increased 18.7% year over year to $106.5 million. EPS came in at $3.47 compared with $2.95 in the prior year.

Going forward, CACI International expects to see continuing strong demand of its services and solutions. Management believes that the initiatives to improve efficiency and effectiveness recently announced by the Secretary of Defense and the Office of Management and Budget will present new opportunities for the company’s services and solutions that support the modernization of government.

CACI International reiterated its guidance for fiscal 2011. The company expects revenues between $3,250 million and $3,400 million. Net income is projected between $116 million and $122 million. EPS is estimated between $3.70 and $3.90.

CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. The company’s solutions enhance defense and intelligence capabilities and ensure homeland security.

Read the full analyst report on CACI