New Business Segments for CACI - Analyst Blog
07 Dicembre 2012 - 11:50AM
Zacks
CACI International
Inc. (CACI), a leading provider of IT outsourcing services
to the U.S. federal government, recently declared that it has
developed new business segments.
These newly introduced business
units are scheduled to start functioning from January 1, 2013. The
company has formed these groups with the intention of grasping the
increasing growth prospects in its Federal Civilian and Business
Systems markets worth $72 billion and $8 billion, respectively.
The company’s Federal Civilian,
advanced Healthcare and Investigative and Litigation Support and
Business Systems services are improving continuously led by its
acquired businesses and high organic growth. The company recently
completed the acquisition of Emergint Technologies, Inc. Earlier,
in July 2012 the company acquired Delta Solutions and Technologies,
Inc.; and Advanced Programs Group, LLC. in October 2011. These
acquisitions are vital in the long run for the company as these
will help fortifying CACI’s foothold in the growing Federal
Civilian and Business Systems arena.
Rick Dansey has been chosen by the
company to lead Federal Civilian Solutions business group. He will
be engaged in augmenting the company’s business in Federal
Civilian, Healthcare, and Investigative and Litigation Support
market arena. In addition, Valerie Lyons, who played a key role in
Delta acquisition, will be leading the company’s Business Systems
Solutions business segments.
Management stated that, owing to
the continuous development in the Federal
Civilian/Healthcare/Litigation Support and Business Systems
markets, the company has decided to focus more on these areas.
Hence, by forming these new groups the company has paved the way
for new growth opportunities in these specified sectors. With this
accomplishment, the company will be able to successfully fulfill
its client’s needs and provide high return to its shareholders.
Based in Arlington, Virginia, CACI
International has ample exposure to the rapidly growing Department
of Defense and Department of Homeland Security budgets. CACI
International’s system integration skills and intelligence
expertise consume a significant portion of the funds earmarked for
the Department of Homeland Security while creating systems that
will foster the sharing of critical information among all
intelligence agencies. We believe the company is comfortably
positioned, given its favored relationship with the DoD and its
strong proposal position.
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). Recently ManTech
International and Genex Systems, LLC jointly received a $23 million
from Marine Corps War fighting Laboratory (MCWL). Per the
contract, ManTech International will be engaged in providing
engineering, analytical, technical, and business support services
to MCWL. Hence, CACI should not become too complacent with its
successful business model.
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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