CACI International (CACI) Secures $64M U.S. Air Force Contract
CACI International Inc. CACI clinched a significant deal — a five-year task order valued at up to $64 million. This contract is dedicated to providing comprehensive life cycle hardware and systems engineering support for the U.S. Air Force's Distributed Common Ground System (DCGS).
The awarded contract will specifically bolster the Air Force Life Cycle Management Center Command, Control, and Intelligence, Surveillance, and Reconnaissance (C2ISR) Division, operating under the Program Executive Office – Digital Directorate.
CACI will play a pivotal role by implementing a series of modifications and upgrades within the DCGS shelter operations, reinforcing the resilience of forward operating location ground stations. This enhancement aims at ensuring agile and effective quick reaction capabilities in diverse operational environments.
The contract entails CACI's responsibility for maintaining and sustaining various mobile and transportable systems across their life cycle for DCGS. Additionally, the company will develop and procure additional components and systems aligned with mission requirements. These initiatives aim to enhance secure and reliable command, control, communications, and intelligence functions, optimizing intelligence, surveillance, and reconnaissance (ISR) operations, and streamlining critical processing, exploitation and dissemination functions.
This strategic contract underscores CACI's commitment to fortifying the infrastructure supporting crucial Air Force operations. The integration of CACI's cutting-edge mobile technologies into the DCGS framework promises to revolutionize data delivery, ensuring prompt and effective decision-making for the nation's defense forces.
Shares of this Zacks Rank #3 (Hold) company have underperformed the Zacks Computer – Services industry in the year-to-date (YTD) period. CACI’s shares have risen 7.1% YTD compared with the industry’s 11.4% growth.
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Continuous Flow of Contracts
CACI International has been benefiting from new business wins from the U.S. Air Force & Army, NASA, National Geospatial-Intelligence Agency (“NGA”) and DARPA. Earlier this week, the company secured a five-year task order from the U.S. Army that has a ceiling value of $420 million. Per the contract, it will provide software and systems to help modernize the army’s command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance (C5ISR) program.
In late October 2023, CACI secured the exclusive contract for a four-year period to provide ongoing assistance to NASA's Johnson Space Center through an indefinite delivery-indefinite quantity agreement. This agreement has a maximum value of $150 million and is set to support NASA's spaceflight systems, simulation and software needs.
Earlier to that (in the same month), it secured a contract from the U.S. Air Force Research Laboratory (“AFRL”). The contract will run over the next five years and has a maximum ceiling value of $917 million. Per the terms of the deal, CACI will implement agile and adaptable processes to develop mission software and data analysis capabilities to advance and modernize AFRL’s C5ISR programs.
Additionally, CACI's longstanding partner, NGA, has started using its Sapphire imagery analytics platform and another AI-powered solution named Feature Trace. Furthermore, it deployed 16 Optical Communications Terminals above DARPA Blackjack Satellites.
These back-to-back wins are the key catalysts for the company, which boasts a large pipeline of new projects and wins deals at regular intervals. In the first quarter of fiscal 2024, this currently Zacks Rank #3 (Hold) company won contracts worth $3.1 billion and ended the quarter with a total backlog of $26.7 billion.
CACI benefits from the government being one of its biggest clients. The company’s association with the government lends stability to its business and moderates revenue fluctuations.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog 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 Intel’s fourth-quarter 2023 earnings has moved up 11 cents to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents per share in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 70.7% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
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The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
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