RESTON, Va. - CACI International Inc (NYSE: CACI) has been awarded an eight-year contract by NASA, valued at up to $2 billion, to deliver digital technology solutions aimed at streamlining and unifying the space agency’s IT services.
The contract, part of the NASA Consolidated Applications and Platform Services (NCAPS) project, is set to standardize and centralize 11 different IT services, enhancing efficiency and productivity across the agency.
Under the agreement, CACI will be responsible for the development, application support, and sustainment of various business functions and devices. This includes a substantial enterprise resource planning (ERP) modernization effort, transitioning NASA's SAP solutions to the more advanced S4/Hana platform.
Moreover, the contract entails the establishment of an NCAPS Agile-at-scale delivery center and the implementation of a full Agile SAFe® model, with a roadmap designed to improve productivity, quality, and time-to-market for NASA's IT services.
John Mengucci, President and CEO of CACI, expressed the company's commitment to assisting NASA in reducing redundant efforts and enhancing the user experience. CACI plans to apply its Agile-at-scale experience to expedite application deployment and automate business processes across NASA's enterprise.
The company's Agile scaling models have a track record of success in various large federal agencies, bolstered by CACI's user experience (UX) and human-centric design approach. The proprietary UX playbooks and tools that CACI has developed are tailored to create custom applications that aim to upgrade digital systems, increase accessibility, and provide seamless interfaces.
CACI International, with a workforce of 24,000, focuses on providing expertise and differentiated technology in national security and government modernization. Recognized as a Fortune World's Most Admired Company, CACI is also listed among the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index.
This news is based on a press release statement and includes forward-looking statements subject to factors that could cause actual results to differ from those projected. Interested parties should refer to CACI's filings with the Securities and Exchange Commission for a detailed understanding of the risk factors involved.
In other recent news, CACI International reported strong third-quarter results, surpassing both consensus and analyst estimates. The company posted an earnings per share (EPS) of $5.74 and revenue of $1.94 billion, exceeding the consensus estimate of $1.86 billion. TD Cowen, Wells Fargo, and Stifel all responded positively to these developments, raising their price targets for CACI shares.
TD Cowen raised its price target from $400 to $435, maintaining a Buy rating. The firm noted CACI's consistent performance and recent significant awards as contributing factors. Similarly, Wells Fargo increased its price target from $410 to $468, while maintaining an Overweight rating.
The firm anticipates CACI's growth to outpace consensus estimates for FY2025, based on recent program wins and a low percentage of contracts up for recompetition.
Stifel also increased its price target for CACI shares, first to $430 from $390, and subsequently to $440, maintaining a Buy rating. The firm highlighted CACI's success in securing new contracts and task orders, including a significant $1.3 billion, 5-year task order to provide communications and IT expertise to the United States European Command (EUCOM) and United States Africa Command (USAFRICOM).
Stifel anticipates that these new contracts will positively impact CACI's financial estimates for fiscal years 2024 and 2025.
InvestingPro Insights
CACI International's recent $2 billion contract with NASA highlights the company's growing role in delivering advanced IT solutions to federal agencies. As the company embarks on this significant project, InvestingPro data underscores CACI's financial health and market position. With a market capitalization of $9.73 billion, CACI showcases robust fundamentals, including a price-to-earnings (P/E) ratio of approximately 24.96, reflecting investor confidence in the company's earnings capacity.
The firm's revenue growth is also notable, with a 10.28% increase over the last twelve months as of Q3 2024, indicating a solid trajectory in its financial performance. CACI's stock has experienced a strong return over the past three months, with a 16.09% price total return, aligning with the company's pattern of steady growth.
InvestingPro Tips provide further insight into CACI's performance and outlook. Analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company's future profitability. Moreover, CACI is trading near its 52-week high, which could indicate a strong market sentiment towards the stock. However, the company is also trading at a high P/E ratio relative to near-term earnings growth, which investors may want to consider in their assessments.
For those looking to delve deeper into CACI's investment potential, InvestingPro offers additional tips and metrics. There are currently 11 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's prospects. Interested readers can access these insights and take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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