Defense, intelligence, and IT solutions provider CACI International (NYSE: CACI) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
CACI met analysts’ revenue expectations last quarter, reporting revenues of $2.35 billion, up 8.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.
Is CACI a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CACI’s revenue to grow 16.8% year on year, improving from the 13% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. CACI has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at CACI’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Huntington Ingalls delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 8.2%, and RTX reported revenues up 14.5%, topping estimates by 7.8%. Huntington Ingalls traded up 16.4% following the results while RTX was also up 9.2%.
Read our full analysis of Huntington Ingalls’s results here and RTX’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. CACI’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $644 (compared to the current share price of $500.47).
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