CACI CACI International Inc

Recently, CACI International Inc. (CACI) announced securing a prime position at the Solutions for Intelligence Analysis (SIA) II contract. Awarded by Defense Intelligence Agency, the five-year (base period of two years and option period of three years) contract is worth approximately $5.6 billion and pertains to indefinite delivery and indefinite quantity stipulations. The agreement is considered as a follow-on of the previous SIA contract received in 2008.

Per this contract, the company will be engaged in offering various security related support solutions to the Defense Intelligence Agency. With the agreement, the company will be able to further strengthen its foothold in the intelligence analysis market.

Management stated that CACI International’s advanced program management and innovation services are likely to be highly beneficial for the Solutions for Intelligence Analysis II contract. With this agreement, the company will be able to provide best-in-class and mission-critical services to Department of Defense for ameliorating its entire intelligence program and reducing the security related risk for America.

Contract wins have forever been a strong point with CACI International. Very recently, the company 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.

However, the company still 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 five-year indefinite delivery and indefinite quantity contract worth nearly $65 million from U.S. Navy Recruiting Command.

Per the contract, CGI Group will be supporting U.S. Navy’s entire recruiting process; alongside it will also introduce mobile recruiting process around the country. Hence, CACI should not become too 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.

 
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