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What's in Store for CACI International's (CACI) Q4 Earnings?
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CACI International (CACI - Free Report) is set to report fourth-quarter fiscal 2020 results on August 12.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.48 billion, which indicates 7.6% growth from the year-ago quarter’s reported figure. Moreover, the consensus estimate for non-GAAP earnings is pegged at $3.37 per share, indicating 71.9% year-over-year surge.
Notably, the company’s earnings beat the Zacks Consensus Estimate twice in the last four quarters and missed the same in the remaining two quarters. The company has a trailing four-quarter earnings surprise of 0.75%, on average.
Let’s see how things are shaping up for the upcoming announcement.
CACI’s fourth-quarter performance is expected to have benefited from increasing organic revenue growth and continued margin expansion. At its last earnings conference call, management noted that despite the impact of COVID-19, EBITDA margin is still expected to be above 10%.
The company is likely to have gained from its large pipeline of government projects. In the fourth quarter, CACI won a $1.5-billion, single-award Indefinite Delivery/Indefinite Quantity (“IDIQ”) contract to provide its enterprise Information Technology, transport, and cybersecurity services to the National Geospatial-Intelligence Agency (NGA) and its partners. It also won a $249 million IDIQ contract by the Naval Sea Systems Command (NAVSEA).
In April 2020, CACI bagged a $83-million order for one base year and four option-years from the U.S. Navy to render mission expertise, including planning maintenance and repair of submarines to the Portsmouth Naval Shipyard in Kittery, Maine.
However, a highly-leveraged balance sheet might have been an overhang on the company’s financial decisions in the fiscal fourth quarter. As of Mar 31, 2020, the company’s cash and cash equivalents were $77.2 million, while total long-term debt (net of current portion) was $1.46 billion.
What Our Model Says
The proven Zacks model does not conclusively predict earnings beat for CACI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CACI has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Autodesk (ADSK - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #3.
Fabrinet (FN - Free Report) has an Earnings ESP of +3.75% and a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in Store for CACI International's (CACI) Q4 Earnings?
CACI International (CACI - Free Report) is set to report fourth-quarter fiscal 2020 results on August 12.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.48 billion, which indicates 7.6% growth from the year-ago quarter’s reported figure. Moreover, the consensus estimate for non-GAAP earnings is pegged at $3.37 per share, indicating 71.9% year-over-year surge.
Notably, the company’s earnings beat the Zacks Consensus Estimate twice in the last four quarters and missed the same in the remaining two quarters. The company has a trailing four-quarter earnings surprise of 0.75%, on average.
Let’s see how things are shaping up for the upcoming announcement.
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Factors at Play
CACI’s fourth-quarter performance is expected to have benefited from increasing organic revenue growth and continued margin expansion. At its last earnings conference call, management noted that despite the impact of COVID-19, EBITDA margin is still expected to be above 10%.
The company is likely to have gained from its large pipeline of government projects. In the fourth quarter, CACI won a $1.5-billion, single-award Indefinite Delivery/Indefinite Quantity (“IDIQ”) contract to provide its enterprise Information Technology, transport, and cybersecurity services to the National Geospatial-Intelligence Agency (NGA) and its partners. It also won a $249 million IDIQ contract by the Naval Sea Systems Command (NAVSEA).
In April 2020, CACI bagged a $83-million order for one base year and four option-years from the U.S. Navy to render mission expertise, including planning maintenance and repair of submarines to the Portsmouth Naval Shipyard in Kittery, Maine.
However, a highly-leveraged balance sheet might have been an overhang on the company’s financial decisions in the fiscal fourth quarter. As of Mar 31, 2020, the company’s cash and cash equivalents were $77.2 million, while total long-term debt (net of current portion) was $1.46 billion.
What Our Model Says
The proven Zacks model does not conclusively predict earnings beat for CACI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CACI has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autodesk (ADSK - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #3.
Fabrinet (FN - Free Report) has an Earnings ESP of +3.75% and a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>