CACI International Inc (NYSE:CACI) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

CACI International Inc (NYSE:CACI) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of US$1.8b and statutory earnings per share of US$3.74 both in line with analyst estimates, showing that CACI International is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for CACI International

After the latest results, the 13 analysts covering CACI International are now predicting revenues of US$7.37b in 2024. If met, this would reflect a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.2% to US$18.37. In the lead-up to this report, the analysts had been modelling revenues of US$7.35b and earnings per share (EPS) of US$17.93 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$378, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CACI International, with the most bullish analyst valuing it at US$400 and the most bearish at US$350 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.7% growth on an annualised basis. That is in line with its 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.3% annually. So although CACI International is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CACI International's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$378, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on CACI International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CACI International analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for CACI International that you should be aware of.

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