RESTON, Va. - CACI International Inc (NYSE: CACI) has been awarded a $314 million task order to provide the U.S. Navy with engineering services and technology support. The five-year contract will support the Naval Undersea Warfare Center (NUWC) through the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract (MAC) vehicle.
The company will focus on modernizing and securing sensor connectivity, crucial for commanders to maintain situational awareness and make informed decisions. The NUWC Engineering and Modernization Operations (NEMO) program, under which CACI will operate, aims to enhance integration support, logistics, project management, cyber capabilities, and analysis. This will enable the Navy to conduct new fleet exercises, test capabilities, and evaluate cyber vulnerabilities, with the goal of reducing the risk of cyber intrusions.
The DoD IAC, sponsored by the Defense Technical Information Center, has been a cornerstone for driving innovation within the DoD since 1946. It supports the S&T and acquisition communities by fostering collaboration and disseminating scientific and technical information.
CACI's role will include developing, delivering, and training sailors in various areas, ensuring that the Navy's fleet exercises and events are supported with the latest technology and knowledge. The task orders awarded under the DoD IAC MAC are managed by the U.S. Air Force's 774th Enterprise Sourcing Squadron.
CACI International, known for its workforce of 24,000 employees and a culture of innovation, is recognized as a Fortune World's Most Admired Company and is included in the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index.
This news is based on a recent press release statement. CACI's forward-looking statements are subject to various factors that could cause actual results to differ from anticipated results, as detailed in their latest Annual Report and filings with the Securities and Exchange Commission.
In other recent news, CACI International has secured a $273 million task order from the U.S. Army Intelligence and Security Command for intelligence support services. In a strategic move, the company announced plans to acquire Azure Summit Technology for $1.275 billion, enhancing its defense technology capabilities. This follows the news of another planned acquisition of an undisclosed company. CACI's recent financial performance showed a 20% increase in Q4 revenue and a 14% rise for the full fiscal year. The company also secured a record $14 billion in contract awards. Analysts from BofA Securities, TD Cowen, and Baird have expressed confidence in CACI's strategic decisions, with BofA Securities raising its price target to $555. For fiscal year 2025, CACI projects a revenue growth of 6% to 8.5%, with revenue estimated to be between $7.9 billion and $8.1 billion, and adjusted net income projected between $505 million and $525 million. These recent developments provide a snapshot of CACI's current activities.
InvestingPro Insights
CACI International Inc's recent $314 million contract with the U.S. Navy underscores its commitment to providing advanced technological services. The company's financial metrics reflect a robust business model, as indicated by a market capitalization of $10.99 billion. CACI's revenue growth has been impressive, with a 14.28% increase over the last twelve months as of Q4 2024, and an even more significant quarterly revenue growth of 19.68% in Q4 2024.
Investors may note that CACI's stock has demonstrated a high return over the last year, with a one-year price total return of 58.42%. Additionally, the stock is trading near its 52-week high, at 99.01% of the peak, which aligns with the company's large price uptick over the last six months, amounting to a 32.75% increase. This performance is indicative of the market's confidence in CACI's operations and its future potential.
On the valuation front, CACI is currently trading at a high P/E ratio of 26.22, which might suggest that the stock is priced at a premium relative to near-term earnings growth. This is an essential consideration for investors, as highlighted by one of the InvestingPro Tips, which also notes that the company operates with a moderate level of debt, potentially offering a balanced risk profile.
For readers interested in a deeper analysis, additional InvestingPro Tips are available, including insights on earnings revisions by analysts and the company's low price volatility. These tips can provide a more nuanced understanding of the investment opportunity presented by CACI International Inc. To explore further, visit the company-specific page at InvestingPro.
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