CACI Set to Report Q1 Earnings: What's in the Offing?
CACI International CACI is scheduled to report first-quarter fiscal 2024 results on Oct 25.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $1.69 billion, indicating an improvement of 5.1% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at $4.52 per share, implying a 3.7% increase from the year-ago quarter’s earnings of $4.36 per share.
The company's earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 4.1%.
Let’s see how things have shaped up before the upcoming announcement.
CACI International, Inc. Price and EPS Surprise
CACI International, Inc. price-eps-surprise | CACI International, Inc. Quote
Factors to Consider
CACI's to-be-reported quarter's performance is likely to have benefited from its large pipeline of government projects. The company has been winning a record number of deals for a while, reflecting its disciplined business development actions, consistent operational excellence and high customer satisfaction. The reliability provided by CACI’s services makes it a preferred choice among contractors.
In the last reported financial results for the fourth quarter of fiscal 2023, CACI won contracts worth $2.3 billion. Management secured several notable deals, including a seven-year single-award indefinite delivery indefinite quantity mission technology contract, called Spectral, for the U.S. Navy’s Naval Information Warfare Systems Command. The contract has a ceiling value of $1.2 billion.
The company's total backlog as of Jun 30, 2023 was $25.8 billion. Back-to-back contract wins at regular intervals might have favored the to-be-reported quarter's performance.
Increasing organic revenue growth and continued margin expansion may be reflected in fiscal first-quarter results. Fixed-price contracts might have contributed to the first-quarter fiscal 2024 performance as well.
In terms of contract type, our model estimates suggest revenues from cost-plus-fee-type contracts, fixed-price contracts, and time and material-type contracts to increase year over year by 4.8%, 4.5% and 5.1% to $980 million, $503.5 million and $198.8 million, respectively.
In terms of the customer mix, we expect revenues from the Department of Defense and Commercial and Other to grow 10.3% and 2.3% to $1.21 billion and $88.4 million, respectively. However, we project Federal Civilian Agencies revenues to decline 8.9% to $386.1 million.
However, higher interest expenses are likely to have somewhat offset the benefits of the aforementioned factors. In the fourth quarter of fiscal 2023, the company’s interest expenses & others increased 114.4% on a year-over-year basis.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CACI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though CACI carries a Zacks Rank #3 at present, it has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Palantir Technologies PLTR, Intel INTC and ON Semiconductor ON have the right combination of elements to post an earnings beat in their upcoming releases.
Palantir carries a Zacks Rank #2 and has an Earnings ESP of +4.35%. The company is scheduled to report third-quarter 2023 results on Nov 2. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 2.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Palantir’s third-quarter earnings stands at 6 cents per share, indicating a year-over-year improvement of 500%. It is estimated to report revenues of $555 million, which suggests an increase of approximately 16.1% from the year-ago quarter.
Intel is slated to report third-quarter 2023 results on Oct 26. The company has a Zacks Rank #2 and an Earnings ESP of +12.98% at present. Intel’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 130.9%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 21 cents per share, suggesting a decrease of 64.4% from the year-ago quarter’s earnings of 59 cents. Intel’s quarterly revenues are estimated to decline 12.1% year over year to $13.48 billion.
ON carries a Zacks Rank #2 and has an Earnings ESP of +1.00%. The company is scheduled to report third-quarter 2022 results on Oct 30. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.7%.
The Zacks Consensus Estimate for ON’s third-quarter earnings is pegged at $1.35 per share, indicating a year-over-year decrease of 6.9%. The consensus mark for revenues stands at $2.15 billion, suggesting a year-over-year decline of 2.1%.
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