Shares of CACI International Inc. (CACI) are down about 9%, after the company’s recent second-quarter numbers fell short of the Street’s expectations on both its top-line and bottom-line fronts. The company provides expertise and technology to government enterprise and mission customers.
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CACI’s Q2 revenue dropped 1.2% year-over-year to $1.49 billion but missed expectations by $41.9 million. Earnings per share at $4.39 too, lagged estimates by $0.06. At the end of Q2, the total backlog with the company stood at $24.1 billion, recording a year-over-year increase of 8%.
Moreover, CACI acquired enterprise IT, infrastructure-as-a-service, and network modernization provider, ID Technologies for a total consideration of $225 million. The acquisition expands CACI’s secure network modernization, product, and engineering solutions abilities.
With these developments in mind, let us take a look at the changes in CACI’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, CACI’s top risk category is Legal & Regulatory, contributing 22% (compared to a sector average of 18%) to the total 36 risks identified. In its recent quarterly report, the company has changed one key risk factor under the Macro & Political risk category.
CACI noted that the COVID-19 pandemic and associated mitigation efforts have had an adverse impact on the U.S. and global economies, which has led to disruptions and volatility in global capital markets.
CACI noted that the effects of COVID-19 and other similar outbreaks could have a materially adverse impact on its business, financials, and cash flows.
Tracking Insiders
Keeping a tab on insiders stocks can provide timely insights for retail investors. According to TipRanks data on Insider Activity, insiders have sold CACI shares worth $2.2 million in the last three months, indicating a negative insider confidence signal for the stock.
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