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CACI Beats on Q1 Earnings & Revenues, Reaffirms FY23 Guidance
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CACI International (CACI - Free Report) started fiscal 2023 on a strong note. Its first-quarter top and bottom lines surpassed the respective Zacks Consensus Estimate and improved on a year-over-year basis.
The national security-related IT solutions and services provider reported non-GAAP earnings of $4.36 per share, beating the Zacks Consensus Estimate of $4.22. Moreover, the bottom line increased 2.8% from the year-ago quarter’s figure of $4.24 per share. This increase in earnings was primarily driven by higher revenues and a lower tax rate, partially offset by higher interest expenses.
In the first quarter of fiscal 2023, CACI reported revenues of $1.61 billion, surpassing the Zacks Consensus Estimate of $1.59 billion. Moreover, the top line increased 7.7% from the prior-year quarter, primarily driven by acquisitions completed earlier this year and an increase of 4% in organic revenues.
CACI International, Inc. Price, Consensus and EPS Surprise
In the first quarter, contract awards totaled $3.2 billion, with more than 80% for the new business. Revenues from contract awards excluded the ceiling value of multi-award, indefinite-delivery indefinite-quantity contracts.
CACI ended the quarter with a backlog of $24.9 billion, up 4% on a year-over-year basis. As of Sep 30, 2022, the funded backlog increased by 6% to $3.7 billion.
In terms of the customer mix, the Department of Defense contributed 68.2% to total revenues in the reported quarter. Federal Civilian Agencies made up 26.4%, while Commercial and other customers accounted for 5.4% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 90.3% and 9.7% of total revenues, respectively.
In terms of contract type, cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts contributed 58.2%, 30% and 11.8%, respectively, to total revenues.
Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 45.7% and 54.3% of total revenues, respectively.
The operating income for the quarter amounted to $132.8 million, up 4.5% year over year. The operating margin contracted by 20 basis points (bps) to 8.3%. Adjusted EBITDA increased 5.7% year over year to $170 million. The adjusted EBITDA margin contracted by 20 bps to 10.6%.
Balance Sheet & Cash Flow
As of Sep 30, 2022, CACI had cash and cash equivalents of $136.6 million compared with the previous quarter’s $114.8 million. The total long-term (net of the current portion) debt was $1.6 billion, down from $1.7 billion as of Sep 30, 2022.
The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $142.9 million in the first quarter, declining by 18.1% from the year-ago quarter.
Free cash flow was $130.2 million during the quarter under review.
CACI Reaffirms Fiscal 2023 Guidance
CACI projects revenues between $6.475 billion and $6.675 billion in fiscal 2023. Adjusted earnings are projected in the range of $17.65-$18.49 per share.
The company expects the fiscal 2023 adjusted net income in the range of $420-440 million. It estimates free cash flow of at least $415 million.
Zacks Rank & Key Picks
CACI currently carries a Zacks Rank #3 (Hold). Shares of CACI have increased 3.9% year to date (YTD).
The Zacks Consensus Estimate for Digi’s first-quarter fiscal 2023 earnings has increased by 4 cents to 42 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved 6.2% up to $1.88 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 58.2% YTD.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 53% YTD.
The Zacks Consensus Estimate for Baidu's fourth-quarter 2022 earnings has been revised 4 cents northward to $2.79 per share over the past 30 days. For 2022, earnings estimates have moved downward by 11 cents to $9.05 per share in the past 30 days.
Baidu's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 43.4% YTD.
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CACI Beats on Q1 Earnings & Revenues, Reaffirms FY23 Guidance
CACI International (CACI - Free Report) started fiscal 2023 on a strong note. Its first-quarter top and bottom lines surpassed the respective Zacks Consensus Estimate and improved on a year-over-year basis.
The national security-related IT solutions and services provider reported non-GAAP earnings of $4.36 per share, beating the Zacks Consensus Estimate of $4.22. Moreover, the bottom line increased 2.8% from the year-ago quarter’s figure of $4.24 per share. This increase in earnings was primarily driven by higher revenues and a lower tax rate, partially offset by higher interest expenses.
In the first quarter of fiscal 2023, CACI reported revenues of $1.61 billion, surpassing the Zacks Consensus Estimate of $1.59 billion. Moreover, the top line increased 7.7% from the prior-year quarter, primarily driven by acquisitions completed earlier this year and an increase of 4% in organic revenues.
CACI International, Inc. Price, Consensus and EPS Surprise
CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote
Quarterly Details
In the first quarter, contract awards totaled $3.2 billion, with more than 80% for the new business. Revenues from contract awards excluded the ceiling value of multi-award, indefinite-delivery indefinite-quantity contracts.
CACI ended the quarter with a backlog of $24.9 billion, up 4% on a year-over-year basis. As of Sep 30, 2022, the funded backlog increased by 6% to $3.7 billion.
In terms of the customer mix, the Department of Defense contributed 68.2% to total revenues in the reported quarter. Federal Civilian Agencies made up 26.4%, while Commercial and other customers accounted for 5.4% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 90.3% and 9.7% of total revenues, respectively.
In terms of contract type, cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts contributed 58.2%, 30% and 11.8%, respectively, to total revenues.
Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 45.7% and 54.3% of total revenues, respectively.
The operating income for the quarter amounted to $132.8 million, up 4.5% year over year. The operating margin contracted by 20 basis points (bps) to 8.3%. Adjusted EBITDA increased 5.7% year over year to $170 million. The adjusted EBITDA margin contracted by 20 bps to 10.6%.
Balance Sheet & Cash Flow
As of Sep 30, 2022, CACI had cash and cash equivalents of $136.6 million compared with the previous quarter’s $114.8 million. The total long-term (net of the current portion) debt was $1.6 billion, down from $1.7 billion as of Sep 30, 2022.
The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $142.9 million in the first quarter, declining by 18.1% from the year-ago quarter.
Free cash flow was $130.2 million during the quarter under review.
CACI Reaffirms Fiscal 2023 Guidance
CACI projects revenues between $6.475 billion and $6.675 billion in fiscal 2023. Adjusted earnings are projected in the range of $17.65-$18.49 per share.
The company expects the fiscal 2023 adjusted net income in the range of $420-440 million. It estimates free cash flow of at least $415 million.
Zacks Rank & Key Picks
CACI currently carries a Zacks Rank #3 (Hold). Shares of CACI have increased 3.9% year to date (YTD).
Some better-ranked stocks from the broader Computer and Technology sector are Digi International (DGII - Free Report) , Zscaler (ZS - Free Report) and Baidu (BIDU - Free Report) . Digi and Zscaler each sport a Zacks Rank #1 (Strong Buy) at present, while Baidu carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Digi’s first-quarter fiscal 2023 earnings has increased by 4 cents to 42 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved 6.2% up to $1.88 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 58.2% YTD.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 53% YTD.
The Zacks Consensus Estimate for Baidu's fourth-quarter 2022 earnings has been revised 4 cents northward to $2.79 per share over the past 30 days. For 2022, earnings estimates have moved downward by 11 cents to $9.05 per share in the past 30 days.
Baidu's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 43.4% YTD.