Analyst Commentary

The NSS acquisition ignited CACI’s growth engine, but margin compression will be a persistent challenge into 2018

CACI is not growing utilization of direct labor in service delivery, which compresses margins even as revenue expands

The highlights of CACI’s (NYSE: CACI) first year following its acquisition of L-3 National Security Solutions were revenue growth that exceeded CACI’s expectations and a demonstrated ability to leverage additional scale and customer relationships to win larger deals. On the downside, profitability pressures were indicative of the difficulties federal services pure plays face when competing in an enter...

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