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Is a Beat Likely for CACI International (CACI) in Q2 Earnings?

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CACI International (CACI - Free Report) is likely to beat expectations when it reports second-quarter fiscal 2024  results after market close on Jan 24.

The Zacks Consensus Estimate for second-quarter fiscal 2024 revenues is pegged at $1.83 billion, indicating an improvement of 11.1% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at $4.50 per share, implying a 5.1% increase from the year-ago quarter’s earnings of $4.28 per share.

The company's earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being 2.5%.

In the last reported quarter, CACI’s non-GAAP earnings of $4.36 per share missed the Zacks Consensus Estimate of $4.52. However, revenues of $1.85 billion came higher than the consensus mark of $1.69 billion.

Let’s see how things have shaped up before the upcoming announcement.

CACI International, Inc. Price and EPS Surprise CACI International, Inc. Price and EPS Surprise

CACI International, Inc. price-eps-surprise | CACI International, Inc. Quote

Factors to Consider

CACI's to-be-reported quarter's performance is likely to have benefited from its large pipeline of government projects. The company has been winning a record number of deals for a while, reflecting its disciplined business development actions, consistent operational excellence and high customer satisfaction. The reliability provided by CACI’s services makes it a preferred choice among contractors.

In the last reported financial results for the first quarter of fiscal 2024, CACI won contracts worth $3.1 billion. Management secured several notable deals, including a $1.3 billion eight-year single-award technology task order to provide global enterprise network modernization to an Intelligence Community customer.

The company's total backlog as of Sep 30, 2023 was $26.7 billion. Back-to-back contract wins at regular intervals might have favored the to-be-reported quarter's performance.

Increasing organic revenue growth and continued margin expansion may be reflected in fiscal second-quarter results. Fixed-price contracts might have contributed to the second-quarter fiscal 2024 performance as well.

In terms of contract type, our model estimates suggest revenues from cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts to increase year over year by 10.5%, 1% and 8.3% to $1.05 billion, $514.5 million and $202.3 million, respectively.

In terms of the customer mix, we expect revenues from the Department of Defense and Commercial and Other to grow 11.4% and 1.4% to $1.29 billion and $90.8 million, respectively. However, we project Federal Civilian Agencies revenues to decline 3.2% to $386.9 million.

However, higher interest expenses are likely to have somewhat offset the benefits of the aforementioned factors. In the first quarter of fiscal 2024, the company’s interest expenses & others increased 57.9% on a year-over-year basis.

Earnings Whispers

Our proven model predicts an earnings beat for CACI this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($4.53 per share) and the Zacks Consensus Estimate ($4.50 per share), is +0.67%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: CACI carries a Zacks Rank #3.

Other Stocks With the Favorable Combination

Per our model, Amazon.com (AMZN - Free Report) , Apple (AAPL - Free Report) and Meta Platforms (META - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.

Amazon sports a Zacks Rank #1 and has an Earnings ESP of +1.93%. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 54.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amazon’s fourth-quarter earnings stands at 79 cents per share, indicating a year-over-year improvement of 276.2%. It is estimated to report revenues of $166.19 billion, which suggests an increase of approximately 11.4% from the year-ago quarter.

Apple is slated to report first-quarter fiscal 2024 results on Feb 1. The company has a Zacks Rank #2 and an Earnings ESP of +2.13% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.5%.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.09 per share, suggesting an increase of 11.2% from the year-ago quarter’s earnings of $1.88. Apple’s quarterly revenues are estimated to improve marginally to $117.5 billion from $117.2 billion in the year-ago quarter.

Meta carries a Zacks Rank #2 and has an Earnings ESP of +1.46%. The company is scheduled to report fourth-quarter 2023 results on Feb 1. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.5%.

The Zacks Consensus Estimate for Meta’s fourth-quarter earnings is pegged at $4.80 per share, indicating a year-over-year increase of 60%. The consensus mark for revenues stands at $38.82 billion, calling for a year-over-year increase of 20.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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