RESTON, Va. - CACI International Inc (NYSE: CACI) has been awarded a five-year task order by the U.S. Southern Command Operations (USSOUTHCOM) with a potential value of up to $226 million. The contract tasks CACI with providing operational and strategic expertise to support USSOUTHCOM's mission objectives.
John Mengucci, CACI President and CEO, highlighted the company's extensive experience in delivering support to various Department of Defense (DoD) combatant commands, which he believes positions CACI favorably to fulfill the requirements of the USSOUTHCOM. Mengucci emphasized CACI's commitment to enhancing national security and safeguarding U.S. interests through professional and technical expertise.
CACI boasts over two decades of experience working with five geographic combatant commands and the U.S. Special Operations Command. The company claims this experience has enabled it to accumulate substantial regional knowledge, which is expected to be beneficial in executing the Southern Command Operations, Planning, and Engagement Support (SCOPES) task order.
The SCOPES task order, issued by the General Services Administration (GSA) Assisted Acquisition Services (AAS) Defense, will leverage CACI's understanding of systems, processes, and partnerships within USSOUTHCOM. The company aims to deliver integrated services that are flexible, efficient, and responsive, thereby enhancing the capabilities of USSOUTHCOM.
CACI International, a Fortune World's Most Admired Company and a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index, employs approximately 24,000 individuals. The company prides itself on its culture of good character, relentless innovation, and long-standing excellence.
The press release includes forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those anticipated. These risk factors are detailed in CACI's Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and other filings with the Securities and Exchange Commission.
This news report is based on a press release statement from CACI International Inc.
In other recent news, CACI International has begun fiscal year 2025 on a strong note, with Jefferies and TD Cowen both raising their price targets to $570. Jefferies highlights the company's significant awards and backlog from the previous quarter, which led to an increase in FY25 revenue projections. TD Cowen also raised its price target due to CACI's robust Q1 performance and revised guidance for FY 2025.
The company reported an 11% increase in Q1 FY 2025 revenue, reaching nearly $2.1 billion, and raised its revenue guidance for FY 2025 to between $8.1 billion and $8.3 billion. Adjusted earnings per share are projected to rise to between $22.89 and $23.78. This strong financial performance is further supported by a significant backlog of $32.4 billion, indicating a positive outlook for long-term growth.
CACI's proposed acquisition of Azure Summit, expected to be completed soon, is viewed favorably by both firms. The acquisition is considered to be both accretive to earnings and synergistic with CACI's existing operations. These recent developments highlight CACI International's strategic efforts to enhance its financial standing and operational efficiency.
InvestingPro Insights
CACI International's recent $226 million contract with USSOUTHCOM aligns well with the company's strong financial performance and market position. According to InvestingPro data, CACI has shown impressive revenue growth of 13.24% over the last twelve months, with total revenue reaching $7.87 billion. This new contract is likely to contribute to continued growth in the coming years.
The company's profitability is also noteworthy, with a gross profit margin of 32.77% and an operating income margin of 8.8%. These figures suggest that CACI is effectively managing its costs while securing lucrative contracts like the USSOUTHCOM task order.
InvestingPro Tips highlight that CACI operates with a moderate level of debt and has liquid assets exceeding short-term obligations. This financial stability positions the company well to take on large, long-term projects such as the five-year USSOUTHCOM contract.
Investors have taken notice of CACI's performance, with the stock showing a strong return of 73.21% over the past year. The company's market capitalization stands at $12.41 billion, reflecting its significant presence in the defense and technology sectors.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for CACI, providing a comprehensive view of the company's financial health and market position.
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