CACI International Inc. (CACI, Financial) reported robust financial results for the third quarter, with revenue reaching $2.2 billion, surpassing analysts' expectations of $2.13 billion. This achievement highlights the company's consistent and exceptional performance in the sector.
The company attributed its strong quarterly results to double-digit revenue growth, improved profitability, and significant cash flow. Additionally, CACI emphasized the expansion of its project backlog, reflecting the success of its strategic approach, which leverages a differentiated software-based model and exceptional execution for its clients.
Building on this momentum, CACI has engaged in capital deployment strategies, including an open market share repurchase program, just after concluding two strategic acquisitions. This proactive approach underscores the company's commitment to enhancing shareholder value.
The company's performance has prompted a revision of its fiscal year 2025 guidance, reinforcing its trajectory to meet three-year financial objectives and deliver long-term benefits to both customers and investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for CACI International Inc (CACI, Financial) is $483.41 with a high estimate of $570.00 and a low estimate of $350.00. The average target implies an upside of 14.18% from the current price of $423.37. More detailed estimate data can be found on the CACI International Inc (CACI) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, CACI International Inc's (CACI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CACI International Inc (CACI, Financial) in one year is $463.60, suggesting a upside of 9.5% from the current price of $423.37. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CACI International Inc (CACI) Summary page.
Key Business Developments
Release Date: January 23, 2025
- Revenue: $2.1 billion, representing 14.5% growth.
- Organic Growth: 8.1% or 14.3% on an underlying basis.
- EBITDA Margin: 11.1%, a year-over-year increase of 180 basis points.
- Adjusted Diluted Earnings Per Share: $5.95, 36% higher than a year ago.
- Operating Cash Flow: $76 million, excluding accounts receivable purchase facility.
- Free Cash Flow: $66 million for the second quarter.
- Net Debt to EBITDA: 2.9 times on a pro forma basis.
- Fiscal '25 Revenue Guidance: Raised to $8.45 billion to $8.65 billion.
- Fiscal '25 Adjusted Net Income Guidance: Increased to $537 million to $557 million.
- Fiscal '25 Adjusted EPS Guidance: $23.87 to $24.76 per share.
- Fiscal '25 Free Cash Flow Guidance: At least $450 million.
- Trailing 12-Month Book-to-Bill Ratio: 1.7 times.
- Backlog: $32 billion, representing just under four years of annual revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CACI International Inc (CACI, Financial) reported a strong revenue growth of 14.5% for the second quarter of fiscal year 2025.
- The company achieved an EBITDA margin of 11.1%, marking a year-over-year increase of 180 basis points.
- CACI International Inc (CACI) secured $1.2 billion in awards, with a trailing 12-month book-to-bill ratio of 1.7 times.
- The integration of recent acquisitions, Azure Summit and Applied Insight, is on track and contributing positively to the company's performance.
- CACI International Inc (CACI) raised its fiscal 2025 guidance, reflecting confidence in continued business momentum and strong financial performance.
Negative Points
- The company's quarterly awards can be lumpy due to timing, which may affect short-term financial visibility.
- There is potential risk associated with the new administration's Department of Government Efficiency (DOGE) initiatives, which could impact federal spending priorities.
- CACI International Inc (CACI) faces challenges from new competition in areas like communications and network modernization.
- The company has a relatively high net debt to trailing 12-month EBITDA ratio of 2.9 times, indicating a focus on deleveraging in the near term.
- Approximately 6% of CACI International Inc (CACI)'s revenue comes from federal civilian agencies, which may be at risk due to potential budget reductions.
