Factors likely to influence the fate of CACI in the results of the third quarter

CACI International CACI is expected to release its results for the third quarter of fiscal 2022 on April 27.

Zacks’ consensus estimate for third-quarter fiscal 2022 revenue is pegged at $1.65 billion, indicating a 6.6% improvement over the year-ago quarter. The consensus mark for non-GAAP earnings stands at $4.79 per share, suggesting a significant decline of 9.3% year over year.

The company’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters and missed once, with the average surprise coming in at 13.5%.

CACI International, Inc. Prize and EPS Surprise

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

Factors to Note

CACI’s performance in the quarter ahead should have benefited from its large pipeline of government projects.

The company’s total backlog as of December 31, 2021 was $24.1 billion. Consecutive contracts won at regular intervals could have helped performance in the quarter to report.

Increased inorganic revenue growth and continued margin expansion may be reflected in fiscal third quarter results. On its most recent earnings conference call, the company said it expects 92% of fiscal 2022 revenue to come from existing programs, 4% from re-competitions and about 3% from newly acquired businesses.

Fixed-price contracts may also have contributed to performance in the third quarter of fiscal 2022.

What our model reveals

Our proven model does not conclusively predict a profit overshoot for CACI this season. The combination of a positive ESP Earnings and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of beating wins. But it is not the case here.

CACI currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can discover the best stocks to buy or sell before they’re flagged with our Income ESP Filter.

Actions with favorable combination

According to our model, Apple AAPL, sony SONY and fortified FTV has the right combination of elements to show a rhythm of gains in its next releases.

Apple is expected to release its second-quarter fiscal 2022 results on April 28. The company currently has a Zacks #2 ranking and an earnings ESP of +1.78%. Apple’s earnings have exceeded the Zacks consensus estimate three times in the previous four quarters and matched it once, with the average surprise being 20.3%. You can see the full list of today’s Zacks #1 Rank stocks here.

Zacks’ consensus estimate for quarterly earnings is pegged at $1.43 per share, suggesting a 2.1% year-over-year improvement. AAPL’s quarterly revenue is expected to rise 5.4% year over year to $94.4 billion.

Sony has a Zacks #3 ranking and an earnings ESP of +12.96%. The company is expected to release its fiscal 2022 fourth quarter results on April 27. Sony’s earnings have exceeded Zacks’ consensus estimate in each of the past four quarters, with the average surprise being 51.4%.

Zacks’ consensus estimate for SONY’s fourth-quarter earnings is pegged at 82 cents per share, indicating a 1.23% year-over-year increase. The revenue consensus mark was $20.82 billion, suggesting a 0.65% year-over-year decline.

Fortive currently has a #3 Zacks rank and +0.30% ESP gain. The company is expected to release its first quarter 2022 results on April 28. Fortive’s earnings have exceeded the Zacks consensus estimate in each of the previous four quarters, with the average surprise being 4%.

Zacks’ consensus estimate for Fortive’s first-quarter earnings is 68 cents per share, suggesting a 7.9% year-over-year increase. FTV forecasts revenue of $1.35 billion, suggesting growth of 7.1% over the prior year quarter.

Stay up to date with upcoming results announcements with the Zacks Earnings Schedule.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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