CACI International Inc. (CACI) recently entered into an agreement to repurchase 4 million shares from Bank of America N.A. (BAC) for $209.7 million.
The company has repurchased the stock under an accelerated share repurchase agreement at an initial price of $52.42 per share.
This agreement is related to CACI’s recently announced repurchase authorization for 4 million shares, which replaced its $175 million share repurchase authorization.
The company will exclude these shares from its outstanding share count. As a consequence, the company has decreased its fiscal 2012 diluted share count expectation to 28 million from 31.9 million at the end of fiscal 2011.
Management stated that this balanced capital deployment strategy would support the shareholders by driving value. Furthermore, it highlights the company’s confidence in its future growth prospects.
During the fourth quarter of fiscal 2011, the company completed its $50 million share repurchase program, which commenced in August 2010. Within this program, the company repurchased 966,116 shares for $51.74 per share.
CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and thereby, increase efficiency and mission effectiveness. The company’s solutions enhance both defense and intelligence capabilities and ensure homeland security.
Going forward, management expects revenues in the range of $3,750 million – $3,950 million. Net income is expected around $147 million and $153 million, up from the previous guidance of $144 million and $150 million. Earnings per share are estimated between $4.70 and $4.90, up from the initial forecast of $4.60 and $4.80.
We maintain our long-term Outperform recommendation on the stock. In the short-term (1 to 3 months) we have a Zacks #2 Rank on the stock, which translates into a Buy rating.
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