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CACI Q3 Earnings and Revenues Surpass Estimates, Up Y/Y
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CACI International (CACI - Free Report) reported overwhelming third-quarter fiscal 2023 results, wherein earnings and revenues both beat the respective Zacks Consensus Estimate and registered significant year-over-year growth as well.
The national security-related IT solutions and services provider reported non-GAAP earnings of $4.92 per share, beating the Zacks Consensus Estimate of $4.64. Moreover, the bottom line increased 6% from the year-ago quarter’s figure of $4.64 per share. This rise in earnings was primarily driven by higher revenues and operating income, partially offset by increased interest expenses and a higher tax rate.
In the third quarter of fiscal 2023, CACI reported revenues of $1.74 billion, surpassing the Zacks Consensus Estimate of $1.65 billion. Moreover, the top line increased 10% from the prior-year quarter, primarily driven by the successful execution of its strategy. The company also noted that the increase in revenues was entirely driven by organic growth.
CACI International, Inc. Price, Consensus and EPS Surprise
In the third quarter, contract awards totaled $1.1 billion, with approximately 50% 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 $25.3 billion, up 8% on a year-over-year basis. As of Mar 31, 2023, the funded backlog increased by 21% to $3.4 billion.
In terms of the customer mix, the Department of Defense contributed 74.4% to total revenues in the reported quarter. Federal Civilian Agencies made up 20.4%, while Commercial and other customers accounted for 5.2% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 89.2% and 10.8% of the total revenues, respectively. In terms of contract type, cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts contributed 57.8%, 30.4% and 11.8%, respectively, to total revenues.
Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 46.6% and 53.4% of the total revenues, respectively. The operating income for the quarter amounted to $155 million, up 23.7% year over year. The operating margin expanded by 100 basis points (bps) to 8.9%.
Adjusted EBITDA increased 18.8% year over year to $191.8 million. The adjusted EBITDA margin expanded by 80 bps to 11%.
Balance Sheet & Cash Flow
As of Mar 31, 2023, CACI had cash and cash equivalents of $106.8 million compared with the previous quarter’s $114.7 million. The total long-term (net of the current portion) debt was $1.77 billion, up from $1.53 billion as of Dec 31, 2022.
The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $56.1 million in the third quarter, declining by 82.1% from the year-ago quarter. Free cash flow was $41 million during the quarter under review. In the first nine months of fiscal 2023, CACI generated operating cash flow (excluding MARPA) and free cash flow of $221 million and $180 million, respectively.
CACI Raises Fiscal 2023 Guidance
Buoyed by a strong third-quarter performance, CACI raised its guidance for fiscal 2023. The company now projects revenues between $6.675 billion and $6.75 billion in fiscal 2023, up from the previous range of $6.475-$6.675 billion. Adjusted earnings are now projected in the range of $18.09-$18.72 per share, up from the earlier projected band of $17.65-$18.49 per share.
CACI now expects the fiscal 2023 adjusted net income in the range of $425-$440 million, instead of the previous projection in the band of $420-$440 million. However, it lowered the forecast for free cash flow to at least $280 million from the at least $320 million guided earlier.
Zacks Rank & Key Picks
Currently, CACI carries a Zacks Rank #3 (Hold). Shares of CACI have remained flat year to date (YTD).
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past 60 days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 11.9% YTD.
The Zacks Consensus Estimate for Zscaler's third-quarter fiscal 2023 earnings has been revised a penny northward to 39 cents per share in the past 30 days. For fiscal 2023, earnings estimates have been revised northward by 4 cents to $1.52 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 29.7%. Shares of ZS have declined 16.8% YTD.
The Zacks Consensus Estimate for Adobe's second-quarter fiscal 2023 earnings has been revised upward by a penny to $3.78 per share over the past 30 days. For fiscal 2023, earnings estimates have moved upward by a penny to $15.41 per share in the past 30 days.
Adobe's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.6%. Shares of ADBE have soared 7.9% YTD.
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CACI Q3 Earnings and Revenues Surpass Estimates, Up Y/Y
CACI International (CACI - Free Report) reported overwhelming third-quarter fiscal 2023 results, wherein earnings and revenues both beat the respective Zacks Consensus Estimate and registered significant year-over-year growth as well.
The national security-related IT solutions and services provider reported non-GAAP earnings of $4.92 per share, beating the Zacks Consensus Estimate of $4.64. Moreover, the bottom line increased 6% from the year-ago quarter’s figure of $4.64 per share. This rise in earnings was primarily driven by higher revenues and operating income, partially offset by increased interest expenses and a higher tax rate.
In the third quarter of fiscal 2023, CACI reported revenues of $1.74 billion, surpassing the Zacks Consensus Estimate of $1.65 billion. Moreover, the top line increased 10% from the prior-year quarter, primarily driven by the successful execution of its strategy. The company also noted that the increase in revenues was entirely driven by organic growth.
CACI International, Inc. Price, Consensus and EPS Surprise
CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote
Quarterly Details
In the third quarter, contract awards totaled $1.1 billion, with approximately 50% 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 $25.3 billion, up 8% on a year-over-year basis. As of Mar 31, 2023, the funded backlog increased by 21% to $3.4 billion.
In terms of the customer mix, the Department of Defense contributed 74.4% to total revenues in the reported quarter. Federal Civilian Agencies made up 20.4%, while Commercial and other customers accounted for 5.2% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 89.2% and 10.8% of the total revenues, respectively. In terms of contract type, cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts contributed 57.8%, 30.4% and 11.8%, respectively, to total revenues.
Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 46.6% and 53.4% of the total revenues, respectively. The operating income for the quarter amounted to $155 million, up 23.7% year over year. The operating margin expanded by 100 basis points (bps) to 8.9%.
Adjusted EBITDA increased 18.8% year over year to $191.8 million. The adjusted EBITDA margin expanded by 80 bps to 11%.
Balance Sheet & Cash Flow
As of Mar 31, 2023, CACI had cash and cash equivalents of $106.8 million compared with the previous quarter’s $114.7 million. The total long-term (net of the current portion) debt was $1.77 billion, up from $1.53 billion as of Dec 31, 2022.
The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $56.1 million in the third quarter, declining by 82.1% from the year-ago quarter. Free cash flow was $41 million during the quarter under review. In the first nine months of fiscal 2023, CACI generated operating cash flow (excluding MARPA) and free cash flow of $221 million and $180 million, respectively.
CACI Raises Fiscal 2023 Guidance
Buoyed by a strong third-quarter performance, CACI raised its guidance for fiscal 2023. The company now projects revenues between $6.675 billion and $6.75 billion in fiscal 2023, up from the previous range of $6.475-$6.675 billion. Adjusted earnings are now projected in the range of $18.09-$18.72 per share, up from the earlier projected band of $17.65-$18.49 per share.
CACI now expects the fiscal 2023 adjusted net income in the range of $425-$440 million, instead of the previous projection in the band of $420-$440 million. However, it lowered the forecast for free cash flow to at least $280 million from the at least $320 million guided earlier.
Zacks Rank & Key Picks
Currently, CACI carries a Zacks Rank #3 (Hold). Shares of CACI have remained flat year to date (YTD).
Some better-ranked stocks from the broader technology sector are Wix.com (WIX - Free Report) , Zscaler (ZS - Free Report) and Adobe (ADBE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past 60 days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 11.9% YTD.
The Zacks Consensus Estimate for Zscaler's third-quarter fiscal 2023 earnings has been revised a penny northward to 39 cents per share in the past 30 days. For fiscal 2023, earnings estimates have been revised northward by 4 cents to $1.52 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 29.7%. Shares of ZS have declined 16.8% YTD.
The Zacks Consensus Estimate for Adobe's second-quarter fiscal 2023 earnings has been revised upward by a penny to $3.78 per share over the past 30 days. For fiscal 2023, earnings estimates have moved upward by a penny to $15.41 per share in the past 30 days.
Adobe's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.6%. Shares of ADBE have soared 7.9% YTD.