CACI Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

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CACI International CACI reported second-quarter fiscal 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

The company reported non-GAAP earnings of $4.39 per share surpassing the Zacks Consensus Estimate of $3.99 per share. The bottom line declined 6.4% from the year-ago quarter’s figure of $4.69 per share.

This decline in earnings was primarily due to lower operational income, high interest expenses and tax rates partially offset by a reduced number of shares outstanding. Reduction in shares outstanding can be attributed to the stock buyback worth $500 million under the accelerated share repurchase program announced in March 2021.

In the second quarter fiscal 2022, CACI reported revenues of $1.49 billion, missing the Zacks Consensus Estimate of $1.53 billion. However, the top line increased 1.2% from the prior-year quarter. Organic revenues improved 1% on a year-over-year basis.

CACI International, Inc. Price, Consensus and EPS Surprise

CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote

Quarterly Details

Contract awards during the second quarter totaled $1.95 billion. The figure decreased 8.3% on a year-over-year basis. Revenues from contract awards exclude ceiling values of multi-award, indefinite-delivery, indefinite-quantity contracts.

CACI ended the quarter with a backlog of $24.1 billion, up 8% on a year-over-year basis. As of Dec 31, 2021, the funded backlog increased 7% to $3.1 billion.

In terms of customer mix, the Department of Defense contributed 69.8% to total revenues in the reported quarter. Federal Civilian Agencies made up 25%, while Commercial and other customers accounted for 5.2% of revenues.

Revenues generated as a prime contractor and a subcontractor accounted for 89.9% and 10.1% of total revenues, respectively.

In terms of contract type, cost-plus-fee type contracts, fixed-price contracts, and time and material type contracts contributed 59.9%, 28.3% and 11.8% to total revenues, respectively.

Revenues generated as ‘Expertise’ and ‘Technology’ accounted for 46.2% and 53.8% of total revenues, respectively.

Operating Details

Operating income for the quarter amounted to $124 million, down 12.3% year over year. Operating margin contracted 120 basis points (bps) to 8.4%. The company cited abnormally high profit margin in the prior-year quarter as the primary reason behind this decline. The downside was due to the pandemic-led lower travel & medical expenses and reduced delivery costs under the fixed price program last year.

Adjusted EBITDA slumped 9.5% year over year to $158 million. Adjusted EBITDA margin of 10.6% fell 130 bps.