Latest news with #SIMSCRIPT
Yahoo
2 days ago
- Business
- Yahoo
A Look Back at Defense Contractors Stocks' Q1 Earnings: CACI (NYSE:CACI) Vs The Rest Of The Pack
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the defense contractors industry, including CACI (NYSE:CACI) and its peers. Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia's invasion of Ukraine or China's aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds. The 13 defense contractors stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results. Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. CACI reported revenues of $2.17 billion, up 11.8% year on year. This print exceeded analysts' expectations by 1.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' backlog and EBITDA estimates. Interestingly, the stock is up 2% since reporting and currently trades at $432.27. Is now the time to buy CACI? Access our full analysis of the earnings results here, it's free. Formed through the split of IT services company SAIC, Leidos (NYSE:LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets. Leidos reported revenues of $4.25 billion, up 6.8% year on year, outperforming analysts' expectations by 3.6%. The business had a very strong quarter with a solid beat of analysts' backlog and EBITDA estimates. However, the results were likely priced into the stock as it's traded sideways since reporting. Shares currently sit at $147. Is now the time to buy Leidos? Access our full analysis of the earnings results here, it's free. Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE:NOC) specializes in providing aerospace, defense, and security solutions for various industry applications. Northrop Grumman reported revenues of $9.47 billion, down 6.6% year on year, falling short of analysts' expectations by 4.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts' expectations and a significant miss of analysts' adjusted operating income estimates. Northrop Grumman delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 7.7% since the results and currently trades at $489.90. Read our full analysis of Northrop Grumman's results here. Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services. Leonardo DRS reported revenues of $799 million, up 16.1% year on year. This result topped analysts' expectations by 9.2%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts' adjusted operating income estimates and a solid beat of analysts' EPS estimates. Leonardo DRS scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 20.1% since reporting and currently trades at $44.40. Read our full, actionable report on Leonardo DRS here, it's free. Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries. RTX reported revenues of $20.31 billion, up 5.2% year on year. This print beat analysts' expectations by 1.7%. It was a strong quarter as it also put up a solid beat of analysts' EBITDA estimates. The stock is up 10.7% since reporting and currently trades at $139.47. Read our full, actionable report on RTX here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
28-05-2025
- Business
- Yahoo
1 Safe-and-Steady Stock to Research Further and 2 to Be Wary Of
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up. Rolling One-Year Beta: 0.85 Started in 1998 as a platform to broadcast press conferences, ON24's (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers. Why Are We Out on ONTF? Offerings couldn't generate interest over the last year as its billings have averaged 3.3% declines Forecasted revenue decline of 6% for the upcoming 12 months implies demand will fall even further Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue At $5.71 per share, ON24 trades at 1.7x forward price-to-sales. If you're considering ONTF for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.36 Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE:LMT) specializes in defense, space, homeland security, and information technology products. Why Do We Think LMT Will Underperform? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.3% for the last five years Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew Waning returns on capital imply its previous profit engines are losing steam Lockheed Martin's stock price of $476.75 implies a valuation ratio of 16.9x forward P/E. Dive into our free research report to see why there are better opportunities than LMT. Rolling One-Year Beta: 0.23 Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. Why Does CACI Stand Out? Demand is greater than supply as the company's 13% average backlog growth over the past two years shows it's securing new contracts and accumulating more orders than it can fulfill Projected revenue growth of 9.2% for the next 12 months suggests its momentum from the last two years will persist Share repurchases over the last two years enabled its annual earnings per share growth of 16.9% to outpace its revenue gains CACI is trading at $467.27 per share, or 17.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Yahoo
01-05-2025
- Business
- Yahoo
2 Surging Stocks to Consider Right Now and 1 to Approach with Caution
Exciting developments are taking place for the stocks in this article. They've all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns. However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are two stocks with lasting competitive advantages and one that may correct. One-Month Return: +4.7% Owner of the iconic Australian-themed Outback Steakhouse, Bloomin' Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands. Why Is BLMN Risky? Disappointing same-store sales over the past two years show customers aren't responding well to its menu offerings and dining experience Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.3 percentage points 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings Bloomin' Brands is trading at $8.05 per share, or 4.4x forward price-to-earnings. To fully understand why you should be careful with BLMN, check out our full research report (it's free). One-Month Return: +42.1% Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions. Why Are We Backing PLTR? Billings growth has averaged 25.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 30.8% Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends Palantir's stock price of $120.30 implies a valuation ratio of 79.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. One-Month Return: +16.2% Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. Why Are We Positive On CACI? Average backlog growth of 13% over the past two years shows it has a steady sales pipeline that will drive future orders Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue At $430 per share, CACI trades at 17.2x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
CACI's (NYSE:CACI) Q1 Sales Top Estimates
Defense, intelligence, and IT solutions provider CACI International (NYSE:CACI) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 11.8% year on year to $2.17 billion. The company expects the full year's revenue to be around $8.6 billion, close to analysts' estimates. Its non-GAAP profit of $6.23 per share was 11.3% above analysts' consensus estimates. Is now the time to buy CACI? Find out in our full research report. Revenue: $2.17 billion vs analyst estimates of $2.13 billion (11.8% year-on-year growth, 1.5% beat) Adjusted EPS: $6.23 vs analyst estimates of $5.60 (11.3% beat) Adjusted EBITDA: $253.5 million vs analyst estimates of $233.5 million (11.7% margin, 8.6% beat) The company slightly lifted its revenue guidance for the full year to $8.6 billion at the midpoint from $8.55 billion Management slightly raised its full-year Adjusted EPS guidance to $24.56 at the midpoint Operating Margin: 9.1%, in line with the same quarter last year Free Cash Flow Margin: 8.7%, similar to the same quarter last year Backlog: $31.4 billion at quarter end, up 9.8% year on year Market Capitalization: $9.48 billion Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia's invasion of Ukraine or China's aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, CACI's 8.4% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. CACI's annualized revenue growth of 12.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated. CACI also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. CACI's backlog reached $31.4 billion in the latest quarter and averaged 13% year-on-year growth over the last two years. Because this number is in line with its revenue growth, we can see the company effectively balanced its new order intake and fulfillment processes. This quarter, CACI reported year-on-year revenue growth of 11.8%, and its $2.17 billion of revenue exceeded Wall Street's estimates by 1.5%. Looking ahead, sell-side analysts expect revenue to grow 9.2% over the next 12 months, a deceleration versus the last two years. Still, this projection is noteworthy and implies the market sees success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. CACI has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.6%, higher than the broader industrials sector. Looking at the trend in its profitability, CACI's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q1, CACI generated an operating profit margin of 9.1%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. CACI's EPS grew at a remarkable 14.4% compounded annual growth rate over the last five years, higher than its 8.4% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. We can take a deeper look into CACI's earnings quality to better understand the drivers of its performance. A five-year view shows that CACI has repurchased its stock, shrinking its share count by 12.1%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For CACI, its two-year annual EPS growth of 16.9% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, CACI reported EPS at $6.23, up from $5.74 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects CACI's full-year EPS of $24.72 to grow 7.4%. We were impressed by how CACI beat analysts' revenue, backlog, EPS, and EBITDA expectations this quarter. We were also glad it raised its full-year revenue and EPS guidance. Zooming out, we think this was a good quarter with some key areas of upside. The stock traded up 1.9% to $432 immediately following the results. CACI may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
