Defense Spending Aids CACI' health.(BUSINESS TIMES)(STOCK VIEW)
Byline: Kristina Stefanova, THE WASHINGTON TIMES
CACI International Inc., which maintains computer networks for the U.S. military and intelligence agencies, is having a strong growth year fueled by the Bush administration's aggressive defense spending.
The Arlington-based company's performance has reflected in its stock, which has traded between $30 and $40 since September 11. It closed at $29.57 Friday on Nasdaq.
The dip in the price resulted from a confusion among analysts following the company's earnings report April 23. The company said that for its third fiscal quarter ended March 31 net income rose 54.5 percent to $8.6 million (33 cents per share) from $5.6 million (24 cents) a year earlier.
CACI had forecast earnings of 29 cents to 32 cents a share, while the consensus of 11 analysts surveyed by Thomson Financial/First Call was for earnings of 31 cents to 38 cents a share. The downgrade hurt the stock, which dipped a few dollars on the day the earnings were released.
Since then the shares have picked up, after the company explained that analysts did not properly calculate the effect of the company's recent secondary stock offering. Last month CACI sold 4.25 million shares, raising $148 million to pay off debt, says Jack London, CACI's chairman, president and chief executive.
"We had a very strong quarter," he says. "And we're looking at a record year coming into the fourth quarter."
Revenues at CACI rose 23.4 percent to $182.82 million from $148.19 million during the third quarter, which was a busy time for the company in terms of winning new contracts.
Last week CACI won a $500 million subcontract with Science Applications International Corp., in San Diego, to support the communications network of the Defense Information Systems Agency. …