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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 2021 results on Aug 11.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.56 billion, which indicates growth of 4.4% from the year-ago quarter.
The Zacks Consensus Estimate for non-GAAP earnings stands at $5.74 per share, suggesting year-over-year improvement of 56%.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.5%.
CACI’s to-be-reported quarter’s performance is likely to have gained from its large pipeline of government projects. Last month, the company won a $1.4 billion single-award task order from the Defense Threat Reduction Agency’s (DTRA) under which it will provide the agency with mission expertise in support of efforts to counter and deter Weapons of Mass Destruction and threat networks.
As of Mar 31, 2021, its total backlog was $22.3 billion. These back-to-back wins are the key catalysts for the company.
However, significant impacts of COVID-related disruptions, including travel restrictions, reduction in government processing of deployment orders and delays in task orders might have partially offset the benefits of the aforementioned factors.
In the fourth quarter of fiscal 2021, CACI is likely to have realized a large tax benefit followed up by the carryback provisions in the CARES Act and tax regulations finalized in the prior quarter. This might have bolstered the company’s margins in the quarter under review.
Increasing organic revenue growth and continued margin expansion are likely to have favored CACI’s fiscal fourth-quarter performance. On the last earnings conference call, management noted that despite the impact of COVID-19, the company’s fiscal 2021 EBITDA margin is expected to be about 11%.
Nevertheless, a highly-leveraged balance sheet might have weighed on the company’s fiscal fourth-quarter performance. As of Mar 31, 2021, the company’s cash and cash equivalents were $105.59 million, while total long-term debt (net of current portion) was $1.78 billion.
What Our Model Says
Our proven model predicts an earnings beat for CACI this time around. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. That is the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
CACI currently has a Zacks Rank #2 and an Earnings ESP of +6.62%.
Other Stocks With Favorable Combinations
Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post earnings beat this quarter:
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What's in Store for CACI International's (CACI) Q4 Earnings?
CACI International (CACI - Free Report) is set to report fourth-quarter fiscal 2021 results on Aug 11.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.56 billion, which indicates growth of 4.4% from the year-ago quarter.
The Zacks Consensus Estimate for non-GAAP earnings stands at $5.74 per share, suggesting year-over-year improvement of 56%.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.5%.
CACI International, Inc. Price and EPS Surprise
CACI International, Inc. price-eps-surprise | CACI International, Inc. Quote
Factors to Note
CACI’s to-be-reported quarter’s performance is likely to have gained from its large pipeline of government projects. Last month, the company won a $1.4 billion single-award task order from the Defense Threat Reduction Agency’s (DTRA) under which it will provide the agency with mission expertise in support of efforts to counter and deter Weapons of Mass Destruction and threat networks.
As of Mar 31, 2021, its total backlog was $22.3 billion. These back-to-back wins are the key catalysts for the company.
However, significant impacts of COVID-related disruptions, including travel restrictions, reduction in government processing of deployment orders and delays in task orders might have partially offset the benefits of the aforementioned factors.
In the fourth quarter of fiscal 2021, CACI is likely to have realized a large tax benefit followed up by the carryback provisions in the CARES Act and tax regulations finalized in the prior quarter. This might have bolstered the company’s margins in the quarter under review.
Increasing organic revenue growth and continued margin expansion are likely to have favored CACI’s fiscal fourth-quarter performance. On the last earnings conference call, management noted that despite the impact of COVID-19, the company’s fiscal 2021 EBITDA margin is expected to be about 11%.
Nevertheless, a highly-leveraged balance sheet might have weighed on the company’s fiscal fourth-quarter performance. As of Mar 31, 2021, the company’s cash and cash equivalents were $105.59 million, while total long-term debt (net of current portion) was $1.78 billion.
What Our Model Says
Our proven model predicts an earnings beat for CACI this time around. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. That is the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
CACI currently has a Zacks Rank #2 and an Earnings ESP of +6.62%.
Other Stocks With Favorable Combinations
Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post earnings beat this quarter:
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +31.27% and a Zacks Rank #1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +17.71% and a Zacks Rank #1, at present.
Axcelis Technologies, Inc. (ACLS - Free Report) has an Earnings ESP of +25.14% and a Zacks Rank #1 currently.