Winning new contracts continues to boost CACI International Inc.‘s (CACI - Analyst Report) performance as it recently announced the receipt of a follow-on contract (base period of six-months and option period of two six-months) worth $53 million. Awarded by the Naval Sea Systems Command (NAVSEA), this contract pertains to providing various services including acquisition and lifecycle, data management, financial management, and technical support to the Expeditionary Warfare and Maritime Surveillance Program Offices (PMS408 and PMS485).
Previously, the company was providing program planning, technical evaluation, financial monitoring, and logistics expertise services to NAVSEA. Now, as per this contract, the company will be ameliorating and technologically advancing Navy’s self-defense abilities and long-range submarine tracking systems.
CACI International’s ongoing relationship with NAVSEA in providing its services is of nearly 40 years now. Hence, it is easy to state that CACI International’s continuing support has proved largely effective to the NAVSEA as it has bolstered improvement considerably for the latter. Under this contract, the company will continue providing technologically advanced solutions at a cheaper cost to NAVSEA to raise its productivity.
CACI International has a large project pipeline of new deals and continues to win more deals at regular intervals. Very recently, CACI International was awarded a contract worth $43 million from U.S. Navy to provide various analytical and programmatic solutions to the Navy Region Marianas (Guam), Naval Facilities Engineering Command (NAVFAC) Pacific, Hickam Air Force Base (AFB), Department of Defense (DoD) and federal agencies for controlling its operations and supporting its installation and environmental necessities.
However, the company needs to be wary of its formidable competitors who include big names such as CGI Group, Inc. (GIB - Snapshot Report) and ManTech International Corporation (MANT - Snapshot Report). ManTech’s operational unit Evolvent Technologies recently received a $20.5 million contract from Department of Defense’ The TriCare Management Activity (TMA) Contract Operations Division (COD). Per the contract, ManTech will be supporting AHLTA-Theater application for improving its functionality. Hence, the company should not become complacent with its contract win spree.
The current Zacks Consensus Estimates for CACI International Inc. are $1.64 and $6.60 per share for the second quarter of fiscal 2013 and fiscal 2013 (ending June 30, 2013), respectively. The estimates represent a year-over-year growth of 8.85% for the second quarter and 11.19% for fiscal 2013. At present, we have a ‘Neutral’ recommendation on CACI International Inc. The stock currently carries a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.