CACI's U.S. Army Reserve Contract - Analyst Blog
27 Novembre 2012 - 11:50AM
Zacks
Winning new contracts continues to
further enhance CACI International Inc.‘s (CACI)
business as it recently announced the receipt of a three-year task
order contract (base period of one year and option period of two
years) worth $31 million. Awarded by the U.S. Army Reserve Command,
this contract pertains to providing various simulation and training
support solutions to the Mission Command Training Support (MCTS)
program.
The contract is awarded against the
OPTARSS II (Operations, Planning, Training and Resource Support
Services) contract vehicle. With the agreement, the company will be
able to extend its coverage in the training and operations platform
and strengthen its foothold in the command, control,
communications, computers, intelligence, surveillance, and
reconnaissance (C4ISR) market.
Under the program, the company
along with the Army Mission Command systems will be engaged in
integrating live, virtual, and constructive simulations and
providing its commanders effective situational control. Services in
the contract also entail pre- and post-mobilization training
support services and combining CACI’s services with U.S. Army
Reserve Command’s digital processes, networks and infrastructure to
further enhance its battle simulations.
Management stated that, CACI has
successfully delivered modeling and simulation support services to
the Department of Defense and U.S. forces during the past 50 years
and it is considered as an expert in providing mission-oriented
training solutions. CACI International’s relationship with U.S.
Army Reserve Command is expected to prove extremely effective for
the company’s training solutions and it is also likely to raise the
productivity and efficacy for U.S. Army Reserve Command.
CACI International has a large
project pipeline of new deals and continues to win more deals at
regular intervals. Very recently, CACI International announced
securing a prime position in the Global Tactical Advanced
Communications Systems (GTACS) contract worth $10 billion. Awarded
by the U.S. Army, this contract pertains to providing various
services including building up, promotion and maintenance of
turnkey telecommunications support solutions to the Army’s Program
Executive Office Command, Control and Communications-Tactical (PEO
C3T).
However, the company needs to be
wary of its formidable competitors who include big names such as
CGI Group, Inc. (GIB) and ManTech
International Corporation (MANT). CGI Group recently
received a seven-year contract worth $142 million from John Hancock
Financial Services. Per the contract, CGI Group will be supporting
John Hancock's data centers for improving its functionality and it
will be also providing Infrastructure as a service (IaaS) to
enhance John Hancock's business. Hence, the company should not
become complacent with its contract win spree.
The current Zacks Consensus
Estimates for CACI International Inc. are $1.64 and $6.60 per share
for the second quarter of fiscal 2013 and fiscal 2013 (ending June
30, 2013), respectively. The estimates represent a year-over-year
growth of 8.7% for the second quarter and 11.1% for fiscal 2013. At
present, we have a ‘Neutral’ recommendation on CACI International
Inc. The stock currently carries a Zacks #3 Rank, which translates
into a short-term ‘Hold’ rating.
CACI INTL A (CACI): Free Stock Analysis Report
CGI GRP INC -A (GIB): Free Stock Analysis Report
MANTECH INTL -A (MANT): Free Stock Analysis Report
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