🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

CACI secures $805 million Navy engineering support order

Published 21/10/2024, 13:22
CACI
-

RESTON, Va. - CACI International Inc (NYSE: CACI) has been awarded a five-year task order worth up to $805 million to provide engineering support and technology for the U.S. Navy's NavalX Office. This task order falls under the Department of Defense Information Analysis Center’s (DoD IAC) multiple-award contract (MAC) vehicle.

The company's President and Chief Executive Officer, John Mengucci, stated that CACI's extensive experience in supporting Navy programs equips them to address the increasing and complex threats to national security. The task order involves research, analysis, engineering, prototyping, and assessments to develop and integrate modern digital tools for the Navy. These efforts aim to bridge critical capability gaps, drive innovation, and deliver solutions to enhance the Navy's operational performance.

The DoD IAC, sponsored by the Defense Technical Information Center, has been a cornerstone for technical data management and research support within the DoD and federal government since 1946. The program aims to foster innovation and technological advancements by promoting collaboration and the dissemination of scientific and technical information.

Task orders like the one awarded to CACI are issued by the U.S. Air Force's 774th Enterprise Sourcing Squadron. These orders contribute to the development of new knowledge and support the enhancement of the DTIC repository, serving the research and development (R&D) and science and technology (S&T) communities.

CACI International, recognized as a Fortune World’s Most Admired Company, is known for its distinctive expertise and differentiated technology in addressing challenges in national security. The company, with a workforce of 24,000, features in the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index.

The information in this article is based on a press release statement from CACI International Inc. It is important to note that statements made in the press release that are not historical facts may be forward-looking and are subject to factors that could cause actual results to differ from anticipated results.

In other recent news, CACI International has made significant strides in expanding its technological capabilities and market presence. The company has completed the acquisition of Applied Insight, a move aimed at boosting its cloud migration and transformation services. In addition, CACI has announced its intention to acquire Azure Summit Technology for $1.275 billion, a strategic decision expected to enhance its defense technology capabilities.

CACI has also secured two substantial task orders recently, one valued at $314 million from the U.S. Navy for engineering services and technology support, and another worth $273 million from the U.S. Army Intelligence and Security Command for intelligence support services. These developments are part of the company's recent activities aimed at strengthening its market position and driving growth.

On the financial front, CACI reported a 20% increase in Q4 revenue and a 14% rise for the full fiscal year. For fiscal year 2025, the company projects a revenue growth of 6% to 8.5%, with revenue estimated to be between $7.9 billion and $8.1 billion, and adjusted net income projected between $505 million and $525 million.

Analysts from BofA Securities, TD Cowen, and Baird have expressed confidence in CACI's strategic decisions and financial stability. BofA Securities raised its price target for CACI to $555, while TD Cowen reiterated a Buy rating with a price target of $480, and Baird maintained a Buy rating with a price target of $544. These recent developments underscore the company's ongoing efforts to deliver value to its stakeholders.

InvestingPro Insights

CACI International's recent $805 million task order from the U.S. Navy aligns well with the company's strong financial performance and market position. According to InvestingPro data, CACI has demonstrated impressive revenue growth, with a 14.28% increase in the last twelve months and a notable 19.68% quarterly growth. This new contract is likely to further bolster these figures.

The company's ability to secure such significant contracts is reflected in its robust financial health. CACI boasts a market capitalization of $11.85 billion and has been profitable over the last twelve months, with a gross profit of $2.51 billion. Its operating income margin stands at a solid 8.48%, indicating efficient operations.

InvestingPro Tips highlight CACI's strong market performance, with the stock trading near its 52-week high and showing a remarkable 62.44% return over the past year. This performance suggests investor confidence in CACI's business model and growth prospects, which are likely reinforced by contract wins like the one mentioned in the article.

It's worth noting that CACI operates with a moderate level of debt, which could provide financial flexibility for future investments in research and development, crucial for maintaining its competitive edge in the defense technology sector.

For investors interested in a deeper analysis, InvestingPro offers 12 additional tips for CACI, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.