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CACI Q1 Earnings and Revenues Surpass Estimates, Up Y/Y
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CACI International (CACI - Free Report) reported better-than-expected first-quarter fiscal 2021 (ended Sep 30, 2020) results. Quarterly earnings came in at $3.67 per share, beating the Zacks Consensus Estimate of $3.15 as well as up 38% year over year.
Revenues were $1.46 billion, up 7% from the year-ago quarter’s figure. This upside can be primarily attributed to new business wins, acquired contracts and on-contract growth. The company registered organic revenue growth of 6.1% in the fiscal first quarter. The top-line figure also outpaced the consensus mark of $1.45 billion.
Quarter Details
Contract awards in the reported quarter were worth $1.8 billion. Revenues from contract awards do not include ceiling values of multi-award, indefinite-delivery, indefinite-quantity contracts.
Total backlog, as of Sep 30, 2020, was $21.9 billion, up 12.3% higher than the prior-year quarter’s level. Funded backlog at the end of September was $3.4 billion, up 4%.
CACI International, Inc. Price, Consensus and EPS Surprise
In terms of customer mix, the Department of Defense contributed 68.8% to total revenues in the reported quarter. Federal Civilian Agencies contributed 26.7%, while Commercial and other customers accounted for 4.5% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 90.9% and 9.1% of total revenues, respectively.
In terms of contract type, cost reimbursable type contracts contributed 56.5%, fixed-price contracts contributed 29.7%, and time and material type contracts contributed 13.8% to total revenues.
Margins
Operating income for the fiscal first quarter came in at $134.4 million, up 34.2% from the year-ago quarter’s level. This upswing resulted from higher revenues, as well as lower indirect costs and selling expenses. Operating income margin expanded 190 basis points (bps) to 9.2%.
Adjusted EBITDA for the fiscal first quarter increased 28.9% year over year to $165.4 million. Adjusted EBITDA margin of 11.3% advanced 190 bps.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, CACI International had cash and cash equivalents of $124.9 million compared with the previous quarter’s $107.2 million.
Total long-term (net of current portion) debt was $1.57 billion.
Cash flow from operations during the fiscal first quarter summed $176.9 million, aided by growth in net income combined with lower DSO (Days Sales Outstanding).
Guidance
CACI International raised its outlook for fiscal 2021. Revenues are now expected in the range of $6.05-$6.25 billion, up from the previous forecast of $6-$6.2 billion. Earnings per share are now estimated between $14.47 and $15.25, up from the earlier expectation of $13.50-$14.28.
The company raised the net income guidance range to $372-$392 million from $347-$367 million. Moreover, net cash provided by operating activities is now anticipated to be at least $600 million instead of the previous projection of at least $580 million.
The company continues to expect solid organic revenue growth and continued margin expansion throughout 2021.
The long-term earnings growth rate for Zoom, Viasat and CDW is currently pegged at 25%, 19%, and 13.1%, respectively.
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CACI Q1 Earnings and Revenues Surpass Estimates, Up Y/Y
CACI International (CACI - Free Report) reported better-than-expected first-quarter fiscal 2021 (ended Sep 30, 2020) results. Quarterly earnings came in at $3.67 per share, beating the Zacks Consensus Estimate of $3.15 as well as up 38% year over year.
Revenues were $1.46 billion, up 7% from the year-ago quarter’s figure. This upside can be primarily attributed to new business wins, acquired contracts and on-contract growth. The company registered organic revenue growth of 6.1% in the fiscal first quarter. The top-line figure also outpaced the consensus mark of $1.45 billion.
Quarter Details
Contract awards in the reported quarter were worth $1.8 billion. Revenues from contract awards do not include ceiling values of multi-award, indefinite-delivery, indefinite-quantity contracts.
Total backlog, as of Sep 30, 2020, was $21.9 billion, up 12.3% higher than the prior-year quarter’s level. Funded backlog at the end of September was $3.4 billion, up 4%.
CACI International, Inc. Price, Consensus and EPS Surprise
CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote
In terms of customer mix, the Department of Defense contributed 68.8% to total revenues in the reported quarter. Federal Civilian Agencies contributed 26.7%, while Commercial and other customers accounted for 4.5% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 90.9% and 9.1% of total revenues, respectively.
In terms of contract type, cost reimbursable type contracts contributed 56.5%, fixed-price contracts contributed 29.7%, and time and material type contracts contributed 13.8% to total revenues.
Margins
Operating income for the fiscal first quarter came in at $134.4 million, up 34.2% from the year-ago quarter’s level. This upswing resulted from higher revenues, as well as lower indirect costs and selling expenses. Operating income margin expanded 190 basis points (bps) to 9.2%.
Adjusted EBITDA for the fiscal first quarter increased 28.9% year over year to $165.4 million. Adjusted EBITDA margin of 11.3% advanced 190 bps.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, CACI International had cash and cash equivalents of $124.9 million compared with the previous quarter’s $107.2 million.
Total long-term (net of current portion) debt was $1.57 billion.
Cash flow from operations during the fiscal first quarter summed $176.9 million, aided by growth in net income combined with lower DSO (Days Sales Outstanding).
Guidance
CACI International raised its outlook for fiscal 2021. Revenues are now expected in the range of $6.05-$6.25 billion, up from the previous forecast of $6-$6.2 billion. Earnings per share are now estimated between $14.47 and $15.25, up from the earlier expectation of $13.50-$14.28.
The company raised the net income guidance range to $372-$392 million from $347-$367 million. Moreover, net cash provided by operating activities is now anticipated to be at least $600 million instead of the previous projection of at least $580 million.
The company continues to expect solid organic revenue growth and continued margin expansion throughout 2021.
Zacks Rank and Stocks to Consider
CACI currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Zoom Video Communications (ZM - Free Report) , Viasat (VSAT - Free Report) and CDW Corporation (CDW - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Zoom, Viasat and CDW is currently pegged at 25%, 19%, and 13.1%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>