CACI Surges Ahead In Its 1Q, Sees More To Come After U.S. Budget Deal

CACI International exceeded revenue and earnings expectations in the first quarter of its 2016 fiscal year and expects to continue that momentum, thanks in part to the budget agreement reached this week between Congress and the White House.

The solution provider for the federal government - No. 16 on CRN's Solution Provider 500 list - reported revenue of $822.4 million, a rise of just under 1 percent over the first quarter of its 2015 fiscal year. Meanwhile, net income rose 8.6 percent to $33.8 million.

The company maintained its full-year financial expectations for revenue ($3.3 billion to $3.5 billion) and net income ($130 million to $140 million), as well as earnings per share ($5.25 to $5.65). CACI’s stock shot up nearly 8 percent after the first four hours of trading Thursday on the New York Stock Exchange, at close to $96.25 per share, a high for the year.

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Net income for the company was higher than expected over the quarter, thanks to customers that agreed to programs and product sales earlier in the year than the company expected, according to Chief Financial Officer Tom Mutryn during the company's earnings call, which was held before U.S. stock markets opened Thursday.

Meanwhile, president and CEO Ken Asbury said the new bipartisan budget agreement in Washington - which will raise both defense and non-defense spending by $80 billion and the recent decision to keep at least 5,500 U.S. troops in Afghanistan into 2017 will allow CACI's customers to better plan and fund future programs.

"We view this [bipartisan agreement] as a positive development for our customer's ability to plan and increase stability for our industry," he said. Asbury added that although the company has not assessed the impact of the delayed withdrawal of troops from Afghanistan will have on the business, CACI will continue to work with its customers – such as the military - as events unfold.

CACI won $1.9 billion in contracts during the quarter, including multi-million dollar deals with the Securities and Exchange Commission, Federal Emergency Management Agency, the Naval Air Warfare Center Aircraft Division and the Army.

The company has not yet adjusted its guidance for the rest of its 2016 fiscal cycle. John Mengucci, chief operating officer and president of U.S. operations, said that although the quarter went well for the company, thanks to a shift in the quarterly timing of customer spending, CACI is on track for the rest of the fiscal year.

PUBLISHED OCT. 29, 2015