NEW YORK (AP) -- Shares of CACI International Inc. retreated Thursday after the government information technology contractor reported its fiscal fourth-quarter results and maintained its net income and revenue estimates for the new fiscal year.
THE SPARK: After the market closed Wednesday, CACI said its net income fell 5.5 percent and revenue slipped 1 percent. Over the three months ended June 30, its profit declined to $43.4 million from $45.9 million. Because of a stock repurchase that reduced the number of shares outstanding, its per-share income rose to $1.59 from $1.44. Revenue fell to $948.9 million from $963.2 million.
Analysts expected profit of $1.50 per share and revenue of $959.4 million, according to FactSet.
Revenue from the Department of Defense fell 7.2 percent to $724 million in the fourth quarter, while revenue from federal civilian agencies rose 21.7 percent to $168.5 million and commercial revenue increased 28.6 percent to $52.5 million. Revenue from state and local governments slipped to $3.9 million from $4.1 million.
THE BIG PICTURE: CACI received $932 million in contract awards during the fourth quarter, up about 70 percent from a year ago. Backlog rose 6 percent to $7.18 billion in fiscal 2012.
For the fiscal year, net income rose 16 percent to $167.5 million, or $5.96 per share. Revenue grew 6 percent, to $3.77 billion.
The company maintained its fiscal 2013 outlook, estimating net income of $6.64 to $6.93 per share and revenue of $3.8 billion to $4 billion.
Analysts forecast net income of $6.61 per share and $3.84 billion in revenue.
THE ANALYSIS: Jefferies & Co. analyst Jason Kupferberg said that if acquisitions are excluded, CACI's revenue has declined for two consecutive quarters. Before the third quarter of fiscal 2012, the company had not reported a decrease in organic revenue in five years. He said CACI is being hurt by uncertainty about the state of government information technology spending.
Stifel Nicolaus analyst William Loomis said the results were solid and contract awards were "surprisingly good," but he said his view of CACI's business is less optimistic than the company's.
"We believe results will be under increasing pressure over the next year due to budget reductions and pricing pressure," he wrote. Loomis and Kupferberg both have "Hold" ratings on CACI shares.
SHARE ACTION: CACI shares fell $3.96, or 6.9 percent, to $53.42 in afternoon trading. The stock has seesawed in the last few months. After CACI reported its third-quarter results on May 1, the shares dropped 32 percent from May 2 to June 1. Since then the stock has risen 28 percent.