Yahoo Finance CACI International (CACI) Q3 Earnings Miss, Revenues Beat
CACI International CACI reported mixed third-quarter fiscal 2024 results, wherein earnings missed the Zacks Consensus Estimate while revenues beat the same.
The national security-related IT solutions and services provider reported non-GAAP earnings per share of $5.13, which missed the Zacks Consensus Estimate of $5.53. However, the bottom line improved 18.5% on a year-over-year basis, primarily due to a rise in operating income and share repurchases, offset by higher tax provision and increased interest expenses.
In the third quarter of fiscal 2024, CACI International reported revenues of $1.94 billion, which beat the Zacks Consensus Estimate of $1.86 billion. The top line increased 11% from the prior-year quarter, primarily driven by organic growth.
CACI International, Inc. Price, Consensus and EPS Surprise
CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote
Quarterly Details
In the fiscal third quarter, contract awards totaled $3.5 billion, with approximately 46% for the new business. Revenues from contract awards excluded the ceiling value of multi-award, indefinite-delivery indefinite-quantity contracts.
The company ended the quarter with a backlog of $28.6 billion, up 13% on a year-over-year basis. As of Mar 31, 2024, the funded backlog decreased 5.9% to $3.2 billion. Our estimates for the total backlog and the funded backlog were pegged at $26.7 billion and $4.08 billion, respectively.
In terms of the customer mix, the Department of Defense contributed 74.9% to total revenues in the reported quarter. Federal Civilian Agencies made up 19.7%, while Commercial and other customers accounted for 5.4% of revenues. Our estimates for the Department of Defense, Federal Civilian Agencies, and Commercial and Other customers’ contributions toward total revenues were pegged at 74%, 21.1% and 4.9%, respectively.
The Prime Contractor and Subcontractor accounted for 89.9% and 10.1% of total revenues, respectively. Our model estimates for the Prime Contractor and Subcontractor’s contributions toward total revenues were pinned at 89% and 11%, respectively.
In terms of contract type, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 60.7%, 27.4% and 11.9%, respectively, to total revenues. Our model estimates for cost-plus-fee-type, fixed-price, and time and material-type contracts’ contributions toward total revenues were pegged at 60%, 28.7% and 11.3%, respectively.
Expertise and Technology accounted for 47.3% and 52.7% of total revenues, respectively. Our estimates for Expertise and Technology’s contributions toward total revenues were pegged at 46.9% and 53.1%, respectively.
The operating income for the quarter amounted to $181.3 million, up 16.9% year over year. However, the operating margin contracted 47 basis points (bps) to 9.35%.
Adjusted EBITDA increased 13.6% year over year to $218 million. However, the adjusted EBITDA margin increased 200 bps to 11.3%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, CACI had cash and cash equivalents of $159.2 million compared with the previous quarter’s $128.8 million. The total long-term (net of the current portion) debt was $1.63 billion, which declined from $1.71 billion as of Dec 31, 2023.
The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $113.6 million in the fiscal third quarter, up 100.3% from the year-ago quarter. Free cash flow was $102 million during the quarter under review.
Updated Fiscal 2024 Guidance
CACI International has updated its guidance for fiscal 2024. The company now projects revenues between $7.5 billion and $7.6 billion, up from the earlier guidance range of $7.3-$7.5 billion. It now forecasts adjusted earnings per share between $20.13 and $20.58 compared with the previous expectations of $19.91-$20.58.
The guidance for the free cash flow remained unchanged at $420 million for fiscal 2024. CACI expects fiscal 2024 adjusted net income in the range of $455-$465 million, up from the previous forecast of $450-$465 million.
Zacks Rank and Other Stocks to Consider
Currently, CACI carries a Zacks Rank #2 (Buy). Shares of the company have returned 24.8% in the past year.
Some other top-ranked stocks from the broader technology sector are Dell Technologies DELL, Arista Networks ANET and Crexendo CXDO, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DELL’s 2024 earnings per share has been revised upward by 54 cents to $7.64 in the past 60 days. Shares of DELL have surged 170.7% in the past year.
The Zacks Consensus Estimate for ANET's 2024 earnings per share has been revised upward by 3 cents to $7.49 in the past 30 days. Shares of ANET have gained 26.1% in the past year.
The Zacks Consensus Estimate for CXDO’s 2024 earnings per share has been revised upward by 6 cents to 23 cents in the past 60 days. Shares of CXDO have skyrocketed 194.1% in the past year.
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