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CACI International (CACI) Q4 Earnings Beat Estimates, Up Y/Y
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CACI International (CACI - Free Report) reported better-than-expected fourth-quarter fiscal 2020 (ended Jun 30, 2020) results. The company also announced the acquisition of Ascent Vision Technologies that will increase its reach in the multi-domain intelligence, surveillance, and reconnaissance (ISR) operations.
Quarterly earnings were $3.68 per share, up 87.2% year over year and beating the Zacks Consensus Estimate by 9.2%.
Revenues were approximately $1.5 billion, up 8.9% from the year-ago quarter’s figure. The upside can be primarily attributed to new business wins, acquired contracts and on-contract growth. Organic revenue growth in the fiscal fourth quarter stood at 8%. The top line also outpaced the consensus mark of $1.48 billion.
CACI International, Inc. Price, Consensus and EPS Surprise
Contract awards in the reported quarter were worth $3.4 billion, a 9.5% year-over-year decline, of which approximately 55% came from new businesses. Revenues from contract awards do not include ceiling values of multi-award, indefinite-delivery, indefinite-quantity contracts.
Total backlog, as of Jun 30, 2020, was $21.6 billion, up 28% higher than the prior-year quarter’s level. Funded backlog at the end of June was $2.8 billion, down 3.4%.
In terms of customer mix, the Department of Defense contributed 69.1% to total revenues in the quarter. Federal Civilian Agencies contributed about 26.8%, while Commercial and other customers accounted for 4.1% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 91.7% and 8.3% of total revenues, respectively.
In terms of contract type, cost reimbursable type contracts contributed 57.2%, fixed-price contracts contributed 27.9%, and time and material type contracts contributed 14.9% to total revenues.
Margins
Operating income for the quarter came in at $133.7 million, up 64.8% from the year-ago quarter’s level. The upside came on the back of higher revenues as well as lower indirect costs and selling expenses. Operating income margin expanded 300 basis points (bps) to 8.9%.
Adjusted EBITDA for the fiscal fourth quarter increased 48.8% year over year to $162.9 million. Adjusted EBITDA margin of 10.9% expanded 290 bps.
Balance Sheet and Cash Flow
At the quarter end, CACI International had cash and cash equivalents of $107.2 million compared with $77.2 million in the previous quarter.
Total long-term (net of current portion) debt was $1.36 billion.
Cash flow from operations, as of Jun 30, was $518.7 million, driven by growth in net income combined with lower DSO.
Guidance
CACI International initiated its guidance for fiscal 2021. Revenues are expected in the range of $6-$6.2 billion. Earnings per share are expected between $13.50 and $14.28.
Net income is expected in the range of $347-$367 million. Moreover, net cash provided by operating activities is expected to be at least $580 million. The company expects to accelerate organic revenue growth and continued margin expansion throughout 2021.
JD.com, Agilent and Analog Devices are set to report their quarterly results on Aug 17, 18 and 19, respectively.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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CACI International (CACI) Q4 Earnings Beat Estimates, Up Y/Y
CACI International (CACI - Free Report) reported better-than-expected fourth-quarter fiscal 2020 (ended Jun 30, 2020) results. The company also announced the acquisition of Ascent Vision Technologies that will increase its reach in the multi-domain intelligence, surveillance, and reconnaissance (ISR) operations.
Quarterly earnings were $3.68 per share, up 87.2% year over year and beating the Zacks Consensus Estimate by 9.2%.
Revenues were approximately $1.5 billion, up 8.9% from the year-ago quarter’s figure. The upside can be primarily attributed to new business wins, acquired contracts and on-contract growth. Organic revenue growth in the fiscal fourth quarter stood at 8%. The top line also outpaced the consensus mark of $1.48 billion.
CACI International, Inc. Price, Consensus and EPS Surprise
CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote
Quarter Details
Contract awards in the reported quarter were worth $3.4 billion, a 9.5% year-over-year decline, of which approximately 55% came from new businesses. Revenues from contract awards do not include ceiling values of multi-award, indefinite-delivery, indefinite-quantity contracts.
Total backlog, as of Jun 30, 2020, was $21.6 billion, up 28% higher than the prior-year quarter’s level. Funded backlog at the end of June was $2.8 billion, down 3.4%.
In terms of customer mix, the Department of Defense contributed 69.1% to total revenues in the quarter. Federal Civilian Agencies contributed about 26.8%, while Commercial and other customers accounted for 4.1% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 91.7% and 8.3% of total revenues, respectively.
In terms of contract type, cost reimbursable type contracts contributed 57.2%, fixed-price contracts contributed 27.9%, and time and material type contracts contributed 14.9% to total revenues.
Margins
Operating income for the quarter came in at $133.7 million, up 64.8% from the year-ago quarter’s level. The upside came on the back of higher revenues as well as lower indirect costs and selling expenses. Operating income margin expanded 300 basis points (bps) to 8.9%.
Adjusted EBITDA for the fiscal fourth quarter increased 48.8% year over year to $162.9 million. Adjusted EBITDA margin of 10.9% expanded 290 bps.
Balance Sheet and Cash Flow
At the quarter end, CACI International had cash and cash equivalents of $107.2 million compared with $77.2 million in the previous quarter.
Total long-term (net of current portion) debt was $1.36 billion.
Cash flow from operations, as of Jun 30, was $518.7 million, driven by growth in net income combined with lower DSO.
Guidance
CACI International initiated its guidance for fiscal 2021. Revenues are expected in the range of $6-$6.2 billion. Earnings per share are expected between $13.50 and $14.28.
Net income is expected in the range of $347-$367 million. Moreover, net cash provided by operating activities is expected to be at least $580 million.
The company expects to accelerate organic revenue growth and continued margin expansion throughout 2021.
Zacks Rank & Key Picks
CACI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are JD.Com (JD - Free Report) , Agilent (A - Free Report) and Analog Devices (ADI - Free Report) . While JD.com flaunts a Zacks Rank #1 (Strong Buy), Agilent and Analog Devices carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
JD.com, Agilent and Analog Devices are set to report their quarterly results on Aug 17, 18 and 19, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>