Why CACI International Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of professional services provider CACI International (NYS: CACI) have jumped by upwards of 12% after the company announced financial guidance along with a management transition and a new share repurchase program.
So what: The company is reiterating fiscal 2012 guidance with revenue expected between $3.7 billion and $3.8 billion, which should turn into diluted earnings per share between $5.80 and $6.01. Fiscal 2013 should see sales between $3.8 billion and $4 billion with a profit of $6.60-$6.90 per share. That's quite a bit better than a profit of $5.69 per share that the Street was expecting.
Now what: Showing its confidence in next year's forecast, the board has authorized a new share repurchase program for up to 4 million shares of common stock. CEO Paul M. Cofoni notified the company that he plans to retire in December, and will assume the role of chief advisor to the executive chairman starting next month to make for a smooth transition. President of U.S. Operations, Daniel Allen, has been named the new CEO.
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