Yahoo Finance CACI Q2 Earnings Miss Estimates and Revenues Outperform
CACI International CACI reported mixed second-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate, while revenues surpassed the same.
The national security-related IT solutions and services provider reported non-GAAP earnings of $4.28 per share, missing the Zacks Consensus Estimate of $4.35. Moreover, the bottom line decreased 2.5% from the year-ago quarter’s figure of $4.39 per share. This decrease in earnings was primarily due to higher interest expenses and a higher tax rate.
In the second quarter of fiscal 2023, CACI reported revenues of $1.65 billion, surpassing the Zacks Consensus Estimate of $1.61 billion. Moreover, the top line increased 11% from the prior-year quarter, primarily driven by acquisitions completed earlier this year and an increase of 6% in organic revenues.
CACI International, Inc. Price, Consensus and EPS Surprise
CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote
Quarterly Details
In the second quarter, contract awards totaled $3.5 billion, with more than 70% for the new business. Revenues from contract awards excluded the ceiling value of multi-award, indefinite-delivery indefinite-quantity contracts.
CACI ended the quarter with a backlog of $26.5 billion, up 10% on a year-over-year basis. As of Dec 31, 2022, the funded backlog increased by 3% to $3.2 billion.
In terms of the customer mix, the Department of Defense contributed 70.4% to total revenues in the reported quarter. Federal Civilian Agencies made up 24.2%, while Commercial and other customers accounted for 5.4% of revenues.
Revenues generated as a prime contractor and a subcontractor accounted for 88.6% and 11.4% of the total revenues, respectively. In terms of contract type, cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts contributed 57.8%, 30.9% and 11.8%, respectively, to total revenues.
Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 45% and 55% of the total revenues, respectively. The operating income for the quarter amounted to $130.9 million, up 5.4% year over year. The operating margin contracted by 50 basis points (bps) to 7.9%.
Adjusted EBITDA increased 6.6% year over year to $168.4 million. The adjusted EBITDA margin contracted by 40 bps to 10.2%.
Balance Sheet & Cash Flow
As of Dec 31, 2022, CACI had cash and cash equivalents of $114.7 million compared with the previous quarter’s $136.6 million. The total long-term (net of the current portion) debt was $1.53 billion, down from $1.6 billion as of Dec 31, 2022.
The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $22 million in the second quarter, declining by 82.9% from the year-ago quarter. Free cash flow was $9.1 million during the quarter under review.
CACI Reaffirms Fiscal 2023 Guidance
CACI continues to project revenues between $6.475 billion and $6.675 billion in fiscal 2023. Adjusted earnings are projected in the range of $17.65-$18.49 per share.
The company expects the fiscal 2023 adjusted net income in the range of $420-440 million. It estimates free cash flow of at least $320 million.
Zacks Rank & Key Picks
Currently, CACI carries a Zacks Rank #3 (Hold). Shares of CACI have plunged 14.4% over the past year.
Some better-ranked stocks from the broader technology sector are Paylocity Holding PCTY, Zscaler ZS and Nutanix NTNX. Paylocity sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Nutanix each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Paylocity’s second-quarter fiscal 2023 earnings has remained unchanged at 70 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved up 47 cents to $4.05 per share in the past 90 days.
Paylocity's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 51.2%. Shares of PCTY have risen 11.4% in the trailing 12 months.
The Zacks Consensus Estimate for Zscaler's second-quarter fiscal 2023 earnings has been revised 3 cents upward to 29 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved up by a penny to $1.24 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 27.3%. Shares of the company have declined 44.8% over the past year.
The Zacks Consensus Estimate for Nutanix's second-quarter fiscal 2023 earnings has been revised northward by 2 cents to 11 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved upward by 4 cents to 17 cents per share in the past 60 days.
Nutanix's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 86.1%. Shares of NTNX have risen 13.1% in the trailing 12 months.
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CACI International, Inc. (CACI) : Free Stock Analysis Report
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