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CACI Bags $258M DoD Contract for Tech Support & Modernization

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CACI International (CACI - Free Report) recently secured a three-year task order worth $258 million from the Defense Agencies Initiative (DAI) to provide enterprise technology support and continue modernization efforts for a variety of Department of Defense (DoD) activities.

As part of the contract, CACI will bring the best technologies at scale to improve business processes for the DoD agencies. The Reston, VA-based company will apply its services across DAI’s several services, including cost accounting, acquire to retire, time and labor, user management, procure to pay, budget to report, budget formulation and order to cash. Also, the company will upgrade DAI’s digital infrastructure with the latest software and DevSecOps tools.

CACI’s new task order falls under Defense Logistics Agency's J6 Enterprise Technology Services indefinite delivery, indefinite quantity contract. Through its technological support for modernizing business systems, the company will ensure that DAI participating DoD agencies meet the evolving business, technology, security and control requirements.

Per the terms of the contract, CACI will perform the task order mainly in Virginia and the Washington, D.C. metro area. The deal consolidates seven previous orders, which currently support 27 different DoD agencies with as many as 73,000 users. The defense contractor revealed that total users will reach 88,000 upon the completion of updates.

CACI on a Contract-Winning Spree

CACI has been winning several deals, which reflect its disciplined business development actions, consistent operational excellence and high customer satisfaction. The reliability provided by the company’s services makes it a preferred choice among contractors.

In the second quarter of fiscal 2022, CACI secured several notable contracts that totaled approximately $2 billion. These include a $514-million single-award task order from the U.S. Army. Per the contract, the company will help the U.S. Army modernize its outside plant infrastructure and facilities so that it can have more fiber optic cables for communications.

It also secured a $785-million single-award task order from the United States Army Special Operations Command (USASOC) during the quarter. Per the five-year contract, CACI will provide USASOC with integrated information warfare and electronic warfare solutions, training, readiness and modernization to advance customer mission requirements.

In its second-quarter earnings release, the company also disclosed that it received classified contracts worth $600 million from federal government customers.

These back-to-back wins are key catalysts driving success for the company. CACI has a large pipeline of new projects and continues to win deals at regular intervals. As of Dec 31, 2021, its total backlog was $24.1 billion.

Zacks Rank & Stocks to Consider

CACI currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology sector include Jabil (JBL - Free Report) , Broadcom (AVGO - Free Report) and Apple (AAPL - Free Report) . While Jabil sports a Zacks Rank #1 (Strong Buy), Broadcom and Apple each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Jabil’s third-quarter fiscal 2022 earnings has been revised upward to $1.62 per share from $1.46 30 days ago. For fiscal 2022, earnings estimates have been revised upward by 67 cents to $7.25 per share in the past 30 days.

Jabil’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 13.5%. Shares of JBL have rallied 7.2% in the trailing 12 months.

The Zacks Consensus Estimate for Broadcom’s second-quarter fiscal 2022 earnings has been revised upward by eight cents to $8.72 per share over the past seven days. For fiscal 2022, earnings estimates have moved upward by 18 cents to $35.67 per share over the past seven days.

Broadcom’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 1.9%. Shares of AVGO have rallied 20.8% over the past year.

The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by seven cents to $1.43 per share over the past 90 days. For fiscal 2022, earnings estimates have moved upward by a penny to $6.16 per share in the past 60 days.

Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 20.3%. AAPL stock has soared 24.7% in the past 12 months.


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