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CACI International (CACI) to Support US Army's DEVCOM C5ISR

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CACI International (CACI - Free Report) secured a $198 million contract from the U.S. Army to improve its cyber security capabilities. The contract aims to design systems and deploy solutions for the U.S. Army’s Combat Capabilities Development Command (DEVCOM), Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Research (C5ISR) Center.

DEVCOM plays a key role in research and development for the U.S. Army, which focuses on various technology and innovation areas. C5ISR looks over the technological aspects of military command and control, communication systems, information technology, intelligence gathering and more. The recent development with CACI will enable the C5ISR Center to safeguard its enterprise systems, get a strategic headstart over the enemy and mitigate cyber threats arising in the future.

This is the second contract in the past year from the U.S. Army DEVCOM C5ISR. CACI International had been awarded a $420 million C5ISR Task Order in December 2023. The company has also bagged contracts from the U.S. Army to provide its expertise in signals intelligence, electronic warfare systems, network modernization, advanced payload technologies, space sensor applications, and aerial intelligence, surveillance and reconnaissance in the past year.

With back-to-back business wins from the U.S. Army, CACI’s Department of Defense (DoD) revenues are soaring through organic expansion. The company also benefits from low fluctuation in its revenues as the defense and government client base lends stability to its business.

The company earns a large portion of its revenues from the DoD, comprising more than two-thirds of its revenues from the segment. In 2021, 2022 and 2023, the DoD contributed 69.2%, 69.8% and 71.9% of the total revenues, respectively.

CACI International also remains focused on gaining at least a $1-billion-plus contract each year. The company benefited from three such contracts in the past year and one in the first half of fiscal 2024. Its $1-billion-plus deals were mostly from the DoD, which includes a $5.7 billion Enterprise Information Technology as a Service contract by the Air Force and a $2.7 billion deal by the National Security Agency. Another deal includes a $1.2 billion contract by the Naval Information Warfare Systems Command. On its latest earnings call, the company stated that it has a long lineup of such deals.

Zacks Rank and Stocks to Consider

Currently, CACI International carries a Zacks Rank #3 (Hold). Shares of CACI have gained 12.6% in the past year.

Some better-ranked stocks from the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) and Blackbaud (BLKB - Free Report) . While BL and ANET sport a Zacks Rank #1 (Strong Buy) each, BLKB carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BlackLine’s fourth-quarter 2023 earnings has been revised by a penny northward to 55 cents per share in the past 30 days. Shares of BL have lost 20.5% in the past year.

The Zacks Consensus Estimate for Arista’s fourth-quarter 2023 earnings has been revised by a penny northward to $1.70 per share in the past 90 days. Shares of ANET have rallied 98.2% in the past year.

The Zacks Consensus Estimate for Blackbaud's fourth-quarter 2023 earnings per share has been revised by a penny northward to $1.04 per share in the past 90 days. Shares of BLKB have returned 27.2% in the past year.


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