* Shares up over 7 pct
* Company posted record revenues in Q1 fiscal 2013
By Andrea Shalal-Esa
WASHINGTON, Nov 1 CACI International Inc's
shares surged more than 7 percent on Thursday after the
U.S. government contractor said it expects to continue to grow
in its current fiscal year despite the challenging U.S. budget
Chief Executive Dan Allen told Reuters the company, a
provider of information services to the government, saw growth
in eight of its 10 main business sectors and expected higher
revenues in the two remaining areas in the second half of the
company's fiscal year, which ends June 30.
CACI, which reported fiscal first-quarter results after the
market close on Wednesday, was on track to meet its full-year
targets, including earnings per share of $6.64 to $6.93 on
revenue of $3.8 billion to $4 billion, he said.
"Even in a difficult budget environment, we're going to
grow," Allen told Reuters. "We want to grow aggressively."
He said the company still aimed to double its size over the
next five years through expansion in its key markets and
"That's kind of the mark that we have out there. That's been
the mindset of the organization over time," Allen said, although
he acknowledged the challenge became greater as the company
Allen told analysts earlier on Thursday that CACI was well
positioned in 10 markets that either promised high growth or
already generated high-volume orders.
He said the company was keeping close tabs on budget
decisions in Washington, and he hoped Congress would find a way
to avoid billions of dollars in additional defense spending cuts
that are due to start taking effect on Jan. 2.
The company, however, did not expect a significant impact on
its overall outlook, even if the cuts were to take effect, given
that it has a large number of separate contracts - more than
2,100 - with the government.
"We may experience reduced funding on some programs, but we
do not expect cancellation of any major programs," he said.
Speaking with Reuters, Allen also said CACI did not expect
to have to issue any layoff notices to workers if lawmakers were
unable to avert the reductions.
CACI shares provisionally closed up 6.8 percent at $53.88 on
the New York Stock Exchange.
Jefferies analyst Jason Kupferberg recommended clients
maintain a hold on the stock, because the shares have already
appreciated about 10 percent since CACI's initial guidance in
June. His price target for the stock is $57.
CACI reported record revenue of $931.2 million in its fiscal
first quarter ended Sept. 30, up 2 percent from $912.4 million
in the year-earlier quarter, with earnings per share surging
26.6 percent to $1.49 from $1.18, largely due to share
Allen said the company's business systems and healthcare
information technology sectors both generated double-digit
revenue growth in the quarter.
He said the intelligence and command, control and
communications sectors - which saw lower revenue as result of
the U.S. military drawdown in Afghanistan - were likely to
resume modest growth in the second half of the year.
Defensive, offensive and intelligence work in cyberspace
would be another high-growth area for the company, Allen said,
citing increased concern about cyber attacks on U.S. networks.
CACI also remained interested in targeted mergers and
acquisitions, he said, but valuations were not well aligned with
the current budget environment and several possible targets had
pulled back earlier this year.