A month has gone by since the last earnings report for CACI International (CACI Quick QuoteCACI - Free Report) . Shares have lost about 14% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is CACI International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

CACI International Q1 Earnings & Revenues Beat Estimates

CACI International reported first-quarter fiscal 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

CACI reported first-quarter fiscal 2025 non-GAAP earnings of $5.93 per share, which beat the Zacks Consensus Estimate of $5.08. The bottom line increased 36% on a year-over-year basis, primarily driven by higher revenues, operating income, reduced interest expenses and lower shares outstanding, partially offset by higher tax provisions.

In the first quarter of fiscal 2025, CACI reported revenues of $2.06 billion, which surpassed the consensus mark of $1.93 billion. The top line increased 11.2% from the prior-year quarter, primarily driven by 9.9% organic growth.

Quarterly Details

In the first quarter of fiscal 2025, contract awards totaled $3.3 billion, with roughly 75% for new business. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity contracts.

Total backlog as of Sept. 30, 2024, was $32.4 billion, up 21.3% from $26.7 billion reported a year ago. Funded backlog was $4.3 billion, up 2.4% from $4.2 billion reported a year ago. Our estimates for total backlog and funded backlog were pegged at $33.1 billion and $4.4 billion, respectively.

In terms of the customer mix, the Department of Defense contributed 74.6% to total revenues in the reported quarter. Federal Civilian Agencies made up 21.4%, while Commercial and other customers accounted for 4%. Our estimates for the Department of Defense, Federal Civilian Agencies, and Commercial and Other customers’ contributions toward total revenues were pegged at 74.3%, 20.8% and 4.9%, respectively.

The Prime Contractor and Subcontractor accounted for 91.4% and 8.6% of total revenues, respectively. Our model estimates for the Prime Contractor and Subcontractor’s contributions toward total revenues were pinned at 89.4% and 10.6%, respectively.

In terms of contract type, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 62.2%, 23.1% and 14.7%, respectively, to total revenues. Our model estimates for cost-plus-fee-type, fixed-price, and time and material-type contracts’ contributions toward total revenues were pegged at 61.2%, 27.1% and 11.7%, respectively.

Expertise and Technology accounted for 48% and 52% of total revenues, respectively. Our estimates for Expertise and Technology’s contributions toward total revenues were pegged at 46.5% and 53.5%, respectively.

The operating income for the quarter amounted to $179.8 million, up 30.9% year over year.  Moreover, the operating margin expanded 130 basis points (bps) to 8.7%.

Adjusted EBITDA increased 23.9% year over year to $215.9 million, while adjusted EBITDA margin expanded 110 bps to 10.5%.

Balance Sheet & Cash Flow

As of Sept. 30, 2024, CACI had cash and cash equivalents of $441 million compared with the previous quarter’s $134 million.

The total long-term (net of the current portion) debt was $1.76 billion, up 19% from June 30, 2024.

The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $60.9 million in the first quarter of fiscal 2025, down 34.7% from the year-ago quarter

Updated Fiscal 2025 Guidance

Buoyed by stronger-than-expected first-quarter performance, CACI raised its guidance for fiscal 2025. The company now anticipates revenues between $8.1 billion and $8.3 billion, up from the earlier guidance of $7.9-$8.1 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $8.06 billion, suggesting a 5.2% increase year over year.

Adjusted net income for fiscal 2025 is projected in the band of $515-$535 million, up from the earlier guidance of $505-$525 million. The company now estimates non-GAAP earnings per share in the range of $22.89-$23.78, up from the previous guidance of $22.44-$23.33. The consensus mark for the bottom line is pinned at $22.99 per share, indicating a year-over-year increase of 9.2%.

Free cash flow is now anticipated to be $435 million compared with the previous guidance of $425 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, CACI International has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CACI International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.