Recently, CACI International Inc. (CACI) declared that it has received a $122 million contract from Naval Aviation Enterprise (:NAE) and the Surface Warfare Enterprise. The company shall provide its advanced technical and engineering solution services to the Warfare Enterprise and Readiness Metrics Support program under this contract, which pertains to indefinite delivery and indefinite quantity stipulations with one base year followed by four option years.
CACI International shall be providing its specialized technological solutions and customized project management process services to these enterprises to control and improve their training methods, maintenance processes, supply chain management and financial management. In addition, this contract will strengthen the existing association between the Navy and Marine Corps.
According to management, CACI’s expert services with the latest processes and concepts are expected to be highly profitable for the Naval Aviation Enterprise. The company’s support solutions are likely to augment the efficiency of these enterprises in the future. In addition, this deal will not only proliferate CACI International’s expertise in IT enterprise solutions but also ossify its existing association with the U.S. Government.
Contract wins have forever been the niche strength of CACI International. The company’s contract funding orders surged almost 7% annually to reach $800 million for the third fiscal quarter of 2012. Such laudatory advances make the company retain its formidable position in the industry even at times when fiscal scenario appears grim in the global economy.
The company, however, should not become complacent with its contract win spree as it faces stiff competition largely from proactive companies. Recently, Edgewater Technology, Inc. (EDGW) reported approximately a 16% annual increase in service revenues to reach $22 million in its second quarter of 2012. Other formidable players in the industry include iGate Corp. (IGTE) and Ebix, Inc. (EBIX).
The current Zacks Consensus Estimates for CACI International Inc. are $1.51 and $5.87 for the fourth quarter of fiscal 2012 and for the full year of fiscal 2012, respectively. The estimates represent a year-over-year growth of 17.66% for the fourth quarter of fiscal 2012 and 31.99% for the full year of fiscal 2012. At present we have a ‘Neutral’ recommendation on CACI International Inc. The stock currently carries a Zacks #2 Rank, which translates into a short-term rating of ‘Buy’.Read the Full Research Report on IGTE
More From Zacks.com
- Investment & Company Information
- CACI International