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CACI International CACI is scheduled to report third-quarter fiscal 2023 results on Apr 26.
The Zacks Consensus Estimate for third-quarter fiscal 2023 revenues is pegged at $1.65 billion, indicating an improvement of 4.4% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at $4.64 per share, in line with the year-ago quarter’s earnings.
Our estimates for third-quarter revenues of $1.64 billion indicate year-over-year growth of 3.8%. Our projection for the bottom line suggests earnings to decline 0.5% to $4.62 per share.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, the average surprise being -0.5%.
Let’s see how things have shaped up before the upcoming announcement.
CACI International, Inc. Price and EPS Surprise
CACI International, Inc. price-eps-surprise | CACI International, Inc. Quote
Factors to Consider
CACI’s to-be-reported quarter’s performance is likely to have benefited from its large pipeline of government projects. The company has been winning a record number of deals for a while, reflecting its disciplined business development actions, consistent operational excellence and high customer satisfaction. The reliability provided by CACI’s services makes it a preferred choice among contractors.
In the second quarter of fiscal 2023, CACI won contracts worth $3.5 billion. Management secured several notable deals, including a mission expertise contract to provide network and exploitation analysis for an Intelligence Community customer’s foreign intelligence and cybersecurity missions. It recognized approximately $1.5 billion in second-quarter awards and backlog based on the currently identified requirements.
In the second quarter, CACI received the Defense Counterintelligence and Security Agency (“DCSA”) Background Investigation Fieldwork Services Contract to provide background investigation capabilities to the DCSA. The five-year, single-award, indefinite-delivery, indefinite-quantity contract is valued at $2.25 billion.
The company’s total backlog as of Dec 31, 2022 was $26.5 billion. Back-to-back contract wins at regular intervals might have favored the to-be-reported quarter’s performance.
Increasing inorganic revenue growth and continued margin expansion may get reflected in fiscal third-quarter results. Fixed-price contracts might have contributed to the third-quarter fiscal 2023 performance as well.
However, higher interests and tax expenses are likely to have somewhat offset the benefits of the aforementioned factors. In the second quarter, the company’s interest & other and tax expenses increased 81.1% and 4.5%, respectively, on a year-over-year basis.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CACI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
CACI carries a Zacks Rank #4 (Sell) at present and has an Earnings ESP of -1.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Skyworks Solutions SWKS, Garmin GRMN and Alphabet GOOGL have the right combination of elements to post an earnings beat in their upcoming releases.
Skyworks carries a Zacks Rank #3 and has an Earnings ESP of +0.15%. The company is anticipated to report second-quarter fiscal 2023 results on May 2. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 1.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyworks’ second-quarter earnings stands at $2.02 per share, implying a year-over-year decline of 23.2%. It is estimated to report revenues of $1.15 billion, which suggests a decrease of approximately 14% from the year-ago quarter.
Garmin is slated to report first-quarter 2023 results on May 3. The company has a Zacks Rank #3 and an Earnings ESP of +5.79% at present. Garmin’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being a negative 7.3%.
The Zacks Consensus Estimate for GRMN’s first-quarter earnings is pegged at $1.00 per share, suggesting a decline of 9.9% from the year-ago quarter’s earnings of $1.11. Garmin’s quarterly revenues are estimated to decline 8.2% year over year to $1.08 billion.
Alphabet carries a Zacks Rank #3 and has an Earnings ESP of +7.41%. The company is slated to report first-quarter 2023 results on Jan 25. Its earnings missed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being -8%.
The Zacks Consensus Estimate for GOOGL’s first-quarter earnings is pegged at $1.06 per share, indicating a year-over-year decrease of 13.8%. The consensus mark for revenues stands at $57 billion, suggesting a year-over-year increase of 1.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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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