Send me real-time posts from this site at my email
Zacks

CACI International (CACI) Q1 Earnings Beat, Sales Up Y/Y

CACI International CACI reported first-quarter fiscal 2022 results, wherein earnings beat the Zacks Consensus Estimate while revenues matched the same.

The company reported non-GAAP earnings of $4.24 per share beating the Zacks Consensus Estimate of $4.01 per share. The bottom line improved 2.4% from the year-ago quarter’s figure of $4.14 per share.

This upsurge in earnings was primarily driven by a reduced number of shares outstanding. Reduction in shares outstanding can be attributed to the stock buyback worth $500 million under the accelerated share repurchase program announced in March this year.

In the first quarter of 2022, CACI reported revenues of $1.49 billion, in line with the Zacks Consensus Estimate. The top line increased 2.2% from the prior-year quarter. Organic revenues grew 2% on a year-over-year basis.

CACI International, Inc. Price, Consensus and EPS Surprise

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

Quarterly Details

Contract awards during the fourth quarter totaled $2.4 billion, with approximately 50% for the new business to CACI. The figure increased 33.3% on a year-over-year basis. Revenues from contract awards exclude ceiling values of multi-award, indefinite-delivery, indefinite-quantity contracts.

CACI ended the quarter with a backlog of $23.9 billion, up 9% on a year-over-year basis. As of Sep 30, 2021, the funded backlog increased 3% to $3.5 billion.

In terms of customer mix, the Department of Defense contributed 67.1% to total revenues in the reported quarter. Federal Civilian Agencies made up 27.7%, while Commercial and other customers accounted for 5.2% of revenues.

Revenues generated as a prime contractor and a subcontractor accounted for 90% and 10% of total revenues, respectively.

In terms of contract type, cost-plus-fee type contracts, fixed-price contracts, and time and material type contracts contributed 60%, 27.3% and 12.7% to total revenues, respectively.

Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 47.2% and 52.8% of total revenues, respectively.

Operating Details

Operating income for the quarter totaled $127 million, down 5.5% year over year. Operating margin contracted 70 basis points (bps) to 8.5%. The company cited abnormally high profit margin in the prior-year quarter as the main reason behind this decline. The downside was due to the pandemic-led lower medical expenses and delivery costs under the fixed price program last year.

Adjusted EBITDA fell 2.7% year over year to $160.9 million. Adjusted EBITDA margin of 10.8% declined 50 bps.

Balance Sheet & Cash Flow

As of Sep 30, 2021, CACI had cash and cash equivalents of $104.4 million compared with the previous quarter’s $88 million. Total long-term (net of current portion) debt was $1.65 billion, down from $1.69 billion as of Jun 30, 2021.

The company generated an operating cash flow (excluding MARPA) of $174.5 million during the first quarter, indicating a slump of 9.5% from the year-ago quarter. The decline was due to higher deferred payroll taxes in the year-ago quarter under the CARES Act.

Free cash flow was $164.3 million during the quarter under review.

Fiscal 2022 Guidance

For fiscal 2022, CACI projects revenues between $6.20 billion and $6.40 billion. Adjusted earnings are forecast to be $18-$18.83 per share.

The company expects a fiscal 2022 net income of $430-450 million. Additionally, free cash flow is estimated to be at least $720 million.

It continues to anticipate solid organic revenue growth and continued margin expansion throughout 2022.

Zacks Rank & Other Key Picks

CACI currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader computer and technology sector are Salesforce CRM, HP Inc. HPQ and Infineon Technologies IFNNY, all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rates for Salesforce, HP and Infineon are currently pegged at 16.8%, 12.7% and 33.0%, respectively.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HP Inc. (HPQ): Free Stock Analysis Report
 
salesforce.com, inc. (CRM): Free Stock Analysis Report
 
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
 
CACI International, Inc. (CACI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue