Recently, CACI International Inc. (CACI - Free Report) declared that it has won a $43 million contract from U.S. Navy. The company has received this contract under its existing SeaPort-e contract and it includes one base year followed by one option year.
According to the agreement, the company will be offering various analytical and programmatic solutions to the Navy Region Marianas (Guam), Naval Facilities Engineering Command (NAVFAC) Pacific, Hickam Air Force Base (AFB), Department of Defense (DoD) and federal agencies for controlling its operations and supporting its installation and environmental necessities.
Per the contract, the company will be mainly focusing on environmental planning, acquisition program management, modeling, simulation as well as program management. Additionally, CACI International shall also be providing its specialized professional and support services to U.S. Navy for controlling its strategic programs in the Pacific Rim.
Previously, CACI International provided its support solutions to manage Navy and Department of Homeland Security’s (DHS) environmental and security processes. Now, with this contract, the company will further strengthen its 15 years of long-term association with U.S. Navy.
Management stated that CACI International’s expert services and concepts are expected to be highly beneficial for U.S. Navy. The company’s support solutions are likely to minimize any kind of environment risk in the Pacific Rim for the Navy through augmenting its efficiency. With the contract, the company will be able to extend its coverage in the Logistics and Material Readiness market.
CACI International has a large project pipeline of new deals and continues to win more deals at regular intervals. These back-to-back contract wins are the key catalysts, driving success perennially for the company.
However, the company competes primarily in the government IT services arena, which, include: CGI Group, Inc. (GIB - Free Report) and ManTech International Corporation (MANT - Free Report) . ManTech’s operational unit Evolvent Technologies recently received a $20.5 million contract from Department of Defense’ The TriCare Management Activity (TMA) Contract Operations Division (COD). Per the contract, ManTech will be supporting AHLTA-Theater application for improving its functionality. Hence, the company should not become complacent with its contract win spree.
The current Zacks Consensus Estimates for CACI International Inc. are $1.64 and $6.60 per share for the second quarter of fiscal 2013 and fiscal 2013 (ending June 30, 2013), respectively. The estimates represent a year-over-year growth of 8.85% for the second quarter and 11.19% for fiscal 2013. At present, we have a ‘Neutral’ recommendation on CACI International Inc. The stock currently carries a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.