computer laptop near gray wall

Q1 Earnings Preview for CACI International (NYSE:CACI)

in EARNINGS/INVESTING IDEAS by

CACI International Inc (NYSE:CACI) is scheduled to report Q1 earnings results on October 28, 2020.

The company is expected to report earnings of $3.05/share on revenue of $1.453 billion. The consensus earnings per share (EPS) of $3.05/share is based on a poll of 10 analysts and represents a growth in eps of 14.6% over the same quarter last year, when the company reported earnings of $2.66/share.

The revenue forecast of $1.453 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth in revenue of 6.6%. Last year the company reported $1.363 billion in revenue for the quarter.

Expected to report EPS growth of 14.6% for Q1, 2021
Metric Expected Prior Year YoY Change
Revenue $1,453.03 $1,363.39 6.6%
EPS $3.05 $2.66 14.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from CACI International Inc for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q4, 2020 $3.47 $3.68 6.1% Beat
Q3, 2020 $3.28 $3.16 −3.7% Missed
Q2, 2020 $2.78 $3.11 11.8% Beat
Q1, 2020 $2.67 $2.66 −0.2% Missed
Q4, 2019 $2.17 $1.96 −9.6% Missed
Q3, 2019 $2.24 $2.69 20.3% Beat
Q2, 2019 $2.28 $2.71 19.1% Beat
Q1, 2019 $2.02 $3.10 53.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 5.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 12, 2020 $212.51 $224.94 5.8% Increase
April 29, 2020 $249.16 $250.14 0.4% Increase
January 29, 2020 $269.36 $280.07 4.0% Increase
October 30, 2019 $223.44 $223.75 0.1% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.60, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.60 implies a 0.5% chance of earnings manipulation.

Fundamentals And Technical Analysis

CACI International Inc is currently trading at $205.81/share, down −3.2% for the day. The company is trading at approximately 71.3% of its 52-week high of $288.59/share. The company’s stock price is down −8.5% since the last earnings report and down −2.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 35.12 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:CACI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 16.07 and a forward P/E multiple of 14.80.

CACI International Inc’s current share price also implies a price-to-book (P/B) multiple of 1.94. The following table summarizes some other key fundamental ratios:

Data as of October 26, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q4
Period End Date June 30, 2020
Stock Price (Current) $205.81
P/E Ratio 16.1x
P/E Ratio (Fwd) 14.8x
PEG Ratio 0.8
Total Debt / Total Capital 25.5%
Levered Free Cash Flow $446.4 million
EV / EBITDA 12.0x

Finbox

CACI International Inc is a mid-cap stock with a market capitalization of $5.166 billion and a total enterprise value of $6.883 billion. The company operates in the Information Technology sector and the IT Services industry.

CACI International Inc, together with its subsidiaries, provides information solutions and services in North America and internationally. The company offers business systems solutions for financial, human capital, asset and materials, and administrative management; develops, integrates, and operates command and control solutions; and develops and integrates solutions that deliver multi-level unified communications from the enterprise directly to and from the tactical edge. It also provides cyber security solutions and supports cyber support to federal customers and the intelligence community (IC), as well as support to the IC and the department of defense. In addition, the company offers enterprise-wide information solutions and services to design, develop, integrate, deploy, operate and manage, sustain, and security of its customers’ IT solutions; and supports federal civilian and military health missions that improve healthcare delivery systems, integrates electronic health records, and enhances the speed and efficiency of emergency responsiveness. Further, it provides intelligence services, such as intelligence analysis, operations and planning, policy, doctrine, and security support, as well as ground truth and intelligence gathering services; and designs, develops, integrates, deploys, and prototypes hardware-and software-enabled tools and applications, as well as provides signals intelligence and radio systems. Additionally, the company offers investigation and litigation support services; logistics and material readiness solutions, and professional services; space operations and resiliency support; and data and software products, as well as develops and integrates surveillance and reconnaissance technologies into platforms. It primarily serves the U.S. government, state and local governments, commercial enterprises, and foreign government agencies. The company was founded in 1962 and is headquartered in Arlington, Virginia.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.