A month has passed by because the final earnings report for CACI Worldwide (CACI). Shares have added about 4% in that time-frame, outperforming the S&P 500.
Will the current constructive pattern proceed main as much as its subsequent earnings launch, or is CACI Worldwide due for a pullback? Earlier than we dive into how buyers and analysts have reacted as of late, let’s take a fast have a look at its most up-to-date earnings report in an effort to get a greater deal with on the essential catalysts.
CACI Worldwide This autumn Earnings & Revenues Beat Estimates
CACI Worldwide reported better-than-expected fourth-quarter fiscal 2024 outcomes, whereby each high and backside strains surpassed the Zacks Consensus Estimate.
The nationwide security-related IT options and companies supplier reported non-GAAP earnings per share of $6.61, which surpassed the Zacks Consensus Estimate of $5.90. The underside line additionally improved 24.7% on a year-over-year foundation, primarily pushed by elevated revenues, increased working earnings and decrease share excellent, partially offset by increased tax provisions and elevated curiosity bills.
Within the fourth quarter of fiscal 2024, CACI Worldwide reported revenues of $2.04 billion, which beat the Zacks Consensus Estimate of $1.93 billion. The highest line elevated 19.7% from the prior-year quarter, primarily pushed by natural progress.
Quarterly Particulars
Within the fiscal fourth quarter, contract awards totaled $5.4 billion, with roughly 70% for the brand new enterprise. Revenues from contract awards excluded the ceiling worth of multi-award, indefinite-delivery indefinite-quantity contracts.
The corporate ended the quarter with a backlog of $31.6 billion, up 22% on a year-over-year foundation. As of Jun 30, 2024, the funded backlog elevated 3% to $3.8 billion. Our estimates for the full backlog and the funded backlog had been pegged at $30.3 billion and $4.2 billion, respectively.
By way of the client combine, the Division of Protection contributed 75.2% to whole revenues within the reported quarter. Federal Civilian Businesses made up 20.1%, whereas Business and different clients accounted for 4.7% of revenues. Our estimates for the Division of Protection, Federal Civilian Businesses, and Business and Different clients’ contributions towards whole revenues had been pegged at 74.1%, 20.9% and 5%, respectively.
The Prime Contractor and Subcontractor accounted for 89.4% and 10.6% of whole revenues, respectively. Our mannequin estimates for the Prime Contractor and Subcontractor’s contributions towards whole revenues had been pinned at 89.2% and 10.8%, respectively.
By way of contract sort, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 61%, 26.9% and 12.1%, respectively, to whole revenues. Our mannequin estimates for cost-plus-fee-type, fixed-price, and time and material-type contracts’ contributions towards whole revenues had been pegged at 60.4%, 27.2% and 12.3%, respectively.
Experience and Know-how accounted for 44.8% and 55.2% of whole revenues, respectively. Our estimates for Experience and Know-how’s contributions towards whole revenues had been pegged at 47.1% and 52.9%, respectively.
The working earnings for the quarter amounted to $197.8 million, up 32.9% yr over yr. Furthermore, the working margin expanded 96 foundation factors (bps) to 9.7%.
Adjusted EBITDA elevated 26.5% yr over yr to $234.9 million whereas adjusted EBITDA margin expanded 60 bps to 11.5%.
Stability Sheet & Money Circulation
As of Jun 30, 2024, CACI had money and money equivalents of $134 million in contrast with the earlier quarter’s $159.2 million. The whole long-term (internet of the present portion) debt was $1.48 billion, which declined from $1.63 billion as of Mar 31, 2023.
The corporate generated working money circulation (excluding mini-automatic radar plotting support or MARPA) of $157.2 million within the fiscal fourth quarter, up 32.1% from the year-ago quarter. Free money circulation was $134.6 million through the quarter beneath assessment.
Up to date Fiscal 2024 Steerage
CACI Worldwide tasks fiscal 2025 revenues between $7.9 billion and $8.2 billion. It forecasts adjusted earnings per share between $22.44 and $23.33.
Free money circulation is estimated to be $425 for fiscal 2025. CACI expects adjusted internet earnings within the vary of $505-$525 million.
How Have Estimates Been Transferring Since Then?
It seems, estimates assessment have trended downward through the previous month.
VGM Scores
At the moment, CACI Worldwide has a pleasant Progress Rating of B, although it’s lagging a bit on the Momentum Rating entrance with a C. Charting a considerably comparable path, the inventory was allotted a grade of B on the worth facet, placing it within the second quintile for this funding technique.
Total, the inventory has an combination VGM Rating of A. For those who aren’t targeted on one technique, this rating is the one try to be concerned with.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. Notably, CACI Worldwide has a Zacks Rank #3 (Maintain). We anticipate an in-line return from the inventory within the subsequent few months.
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CACI International, Inc. (CACI) : Free Stock Analysis Report
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