CACI International Inc. (CACI), a technology contractor for the U.S. government, fell the most in more than eight months after it reduced its earnings outlook and missed analysts’ estimates for third-quarter sales and profit.
CACI dropped as much as 5.6 percent in New York trading, the biggest intraday decline since Aug. 16. The Arlington, Virginia-based company was down 1.8 percent to $56.23 at 10:16 a.m.
The company, which gets about 95 percent of its revenue from the U.S. government, has been hurt as agencies cope with automatic budget cuts that began March 1. They are set to strip $85 billion from federal spending by Sept. 30.
“Driven by continued budget uncertainties, our customers are allocating funds on a more incremental basis than they have in past years,” John Mengucci, CACI’s chief operating officer, said today on a conference call with analysts.
CACI expects profit from $6.29 to $6.55 a share in the year ending June 30, compared with its earlier forecast of $6.54 to $6.79 a share, the company said yesterday in a statement.
Sales in the third quarter ended March 31 were $906 million, compared with the average analyst estimate of $933 million. Profit in the quarter was $1.62 a share. Analysts had predicted $1.65 a share, the average of 13 estimates compiled by Bloomberg.
ManTech International Corp. (MANT), which also provides engineers and consultants to federal agencies, yesterday reported first- quarter profit lower than analysts’ estimates and cut its full- year earnings forecast to $2.28 a share, from $2.36 a share.
The Fairfax, Virginia-based company fell less than 1 percent to $25.90 at 10:15 a.m. in New York after declining as much as 2.1 percent earlier.
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