RESTON, Va. - Defense contractor CACI International Inc (NYSE: CACI) has announced it will acquire an undisclosed company, as stated in a conference call held today. The company's executive leaders shared details of the definitive agreement during the call, which included a subsequent question-and-answer session.
The acquisition, specifics of which were not disclosed in the press release, marks a strategic move for CACI, known for its national security-related services and technological offerings. The company boasts a workforce of 24,000 and is recognized for its expertise in delivering solutions to meet customer challenges in national security.
CACI holds a position as a Fortune World's Most Admired Company and is part of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. The company's reputation is built on a culture of good character, relentless innovation, and consistent excellence.
Investors and interested parties were invited to access the call through CACI's Investor Relations site. A replay of the conference call will be available on the company's website, caci.com, for one year after the event.
In the press release, CACI also cautioned that some statements made during the conference call are forward-looking and subject to various factors that could cause actual results to differ from those anticipated. The company referred to risk factors detailed in its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and other filings with the Securities and Exchange Commission.
This announcement is based on a press release statement and does not include additional details about the acquisition, such as the name of the acquired company or the financial terms. CACI's strategic intentions and the implications of the acquisition for the market and investors remain to be seen as further information is released.
In other recent news, CACI International experienced a 20% increase in Q4 revenue and a 14% rise for the full fiscal year, surpassing its own guidance. The company also secured a record $14 billion in contract awards, and its backlog rose to a robust $32 billion, marking a 22% year-on-year increase. CACI's EBITDA reached nearly $800 million, and its free cash flow surpassed $380 million.
Analysts from BofA Securities and Baird have expressed optimism about CACI's future. BofA Securities raised the stock's price target from $450.00 to $535.00 and maintained a Buy rating, while Baird increased its price target to $544.
CACI has secured several significant contracts. It secured an $80 million task order to provide engineering support to the U.S. Navy's Naval Sea Systems Command, and a potential six-year, $239 million task order from the U.S. Army to provide intelligence analysis and operations support to U.S. forces in Europe and Africa.
For fiscal year 2025, CACI projects a revenue growth of 6% to 8.5%, with an expected 11% increase in free cash flow per share. The company's revenue is estimated to be between $7.9 billion and $8.1 billion, with adjusted net income projected between $505 million and $525 million.
Lastly, CACI has been recognized with two Nunn-Perry Awards for its mentorship excellence under the Department of Defense (DoD) Mentor Protégé Program, highlighting the company's commitment to fostering growth and innovation among small businesses.
InvestingPro Insights
As CACI International Inc (NYSE: CACI) gears up for its strategic acquisition, investors are closely monitoring the company's financial health and market position. According to InvestingPro data, CACI boasts a market capitalization of $10.62 billion, reflecting its substantial presence in the defense contracting industry. The company's P/E ratio stands at 25.38, suggesting that investors may be expecting higher earnings in the future, even as it trades at a high P/E ratio relative to near-term earnings growth, an InvestingPro Tip to consider.
InvestingPro metrics also reveal a robust revenue growth of 14.28% over the last twelve months as of Q4 2024, with a significant quarterly increase of 19.68% in Q4 2024. This growth trajectory indicates that CACI is expanding its operations effectively, likely contributing to the company's decision to pursue acquisitions. Additionally, the firm's gross profit margin of 32.8% showcases its ability to maintain profitability amidst its growth efforts.
Investors looking at the company's stock performance will note that CACI is trading near its 52-week high, with a price 97.35% of this peak. This could reflect market confidence in the company's strategic moves and operational performance. Despite not paying a dividend, as highlighted by another InvestingPro Tip, CACI has experienced a large price uptick over the last six months, with a 27.79% total return, underscoring the stock's appeal to growth-focused investors.
For those considering a deeper dive into CACI's financials and future prospects, InvestingPro offers additional tips, with a total of 11 tips currently listed for the company. These insights could provide valuable context for understanding CACI's market dynamics and investment potential in light of its recent acquisition announcement.
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