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What's in Store for CACI International's (CACI) Q3 Earnings?

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CACI International (CACI - Free Report) is set to report third-quarter 2020 results on Apr 29.

For the quarter, the Zacks Consensus Estimate for revenues currently stands at $1.45 billion, implying 14.87% growth from the year-ago quarter’s reported figure. Moreover, the consensus mark for non-GAAP earnings stands at $3.24 per share, suggesting a 20.45% year-over-year improvement.

Notably, the company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average positive surprise being 5.61%.

Let’s see how things are shaping up for 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 at Play

CACI’s upcoming quarterly results are expected to have benefited from accelerating organic revenue growth and continued margin expansion, which is expected to continue throughout the fiscal year. Notably, in its last earnings call, the company had mentioned that it expects to submit $13.4 billion worth of bids during the March quarter.

The company is likely to have gained from its large pipeline of government projects. The $249-million task order to support the U.S. Africa Command (AFRICOM) with its advanced mission expertise is one such notable win of the company during the quarter.
However, a highly leveraged balance sheet might have been an overhang on the company’s financial decisions in the fiscal third quarter. As of Dec 31, 2019, the company’s cash and cash equivalents were $68.6 million, while total long-term debt (net of current portion) was $1.55 billion.

What Our Model Says

The proven Zacks model does not conclusively predict an earnings beat for CACI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CACI has a Zacks Rank #3 and an Earnings ESP of -2.85%.

Stocks to Consider

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Baidu, Inc. (BIDU - Free Report) has an Earnings ESP of +10.09% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple Inc. (AAPL - Free Report) has an Earnings ESP of +8.10% and a Zacks Rank #3., inc. (CRM - Free Report) has an Earnings ESP of +3.75% and a Zacks Rank of 3, currently.

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