Yahoo Finance CACI International (CACI) Wins $2B NASA IT Support Services Deal
CACI International Inc. CACI is gaining from the growing adoption of its products and services. Its disciplined business development actions, consistent operational excellence and high customer satisfaction help it win new deals at regular intervals.
Most recently, CACI secured an eight-year contract worth up to $2 billion to provide digital solutions for NASA under the NASA Consolidated Applications and Platform Services (“NCAPS”) award. This initiative aims to streamline and centralize 11 IT services across NASA, enhancing efficiency and productivity. The contract expands CACI’s partnership with NASA, consolidating more than 200 systems from several NASA locations into a single program.
Per the contract terms, CACI will support development, application maintenance and ERP modernization, specifically transitioning SAP solutions to S4/Hana. The project includes establishing an Agile-at-scale delivery center and implementing a comprehensive roadmap to boost productivity and quality.
CACI’s proven Agile methodologies and user-centric design will drive this significant digital overhaul and deliver a seamless and efficient user experience for NASA’s enterprise systems.
CACI shares have made a remarkable run this year so far. The stock has soared 35% year to date (YTD), outperforming the Zacks Computer – Services industry’s return of 2.7%. Compared with its peers, Science Applications International Corporation SAIC stock has declined 5.1% YTD, while shares of Leidos Holdings, Inc. LDOS and Booz Allen Hamilton Holding Corporation BAH have risen 35.2% and 22.1%, respectively.
YTD Price Performance
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Continuous Flow of Contracts Aids Growth
CACI recently demonstrated its robust capabilities in securing significant contracts, solidifying its position as a major player in providing technology solutions to government agencies. Its latest contract wins are a testament to its strategic focus on innovation and delivering high-value services, positioning it for sustained growth and stability.
CACI has been gaining from the increasing number of $1 billion-plus contracts. The recent contract of $2 billion follows four such $1 billion-plus contracts over the past year. These $1-billion-plus task orders were mostly from the Department of Defense.
The list of contracts includes a $5.7 billion contract with the Air Force, a $2.7 billion deal with the National Security Agency, a $1.3 billion defense contract and a $1.2 billion agreement with the Naval Information Warfare Systems Command. These large deals that span over multiple years lower fluctuation in CACI’s revenues and provide stability to its business.
CACI’s success in securing large contracts can be attributed to its continuous investment in advanced technology solutions. The company’s focus on areas like agile IT and communications, edge computing, and zero-trust cybersecurity frameworks ensures that it remains at the forefront of technological innovation.
This strategic emphasis on cutting-edge solutions enables CACI to meet the evolving needs of its clients, particularly in the defense sector, where technological superiority is paramount. CACI’s portfolio strength significantly enhances its competitive edge against rivals like Science Applications International, Leidos and Booz Allen Hamilton.
CACI’s financial performance reflects its strategic success, with a robust pipeline of contracts ensuring steady revenue growth. In the last reported financial results for the third quarter of fiscal 2024, CACI’s revenues and non-GAAP earnings increased 11% and 17%, respectively.
The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward by 9 cents to $22.88 per share, which indicates year-over-year growth of 12.4%. Moreover, the stock’s long-term estimated earnings growth is pegged at 10.4%.
Conclusion
CACI’s recent contract wins position it well for continued growth and market leadership. The company’s strategic focus on advanced technology solutions, coupled with its robust financial performance, makes it an attractive investment opportunity. With a strong track record of securing high-value contracts and a consistent revenue stream from the defense department, CACI is poised to ride the wave of its new contract wins, offering investors a compelling case for inclusion in their portfolios.
Moreover, CACI carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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CACI International, Inc. (CACI) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Science Applications International Corporation (SAIC) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
