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Booz Allen (BAH) Q3 Earnings Beat, Revenues Miss Estimates

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  • BAH

Booz Allen Hamilton Holding Corp. BAH reported mixed second-quarter fiscal 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings per share (excluding 12 cents from non-recurring items) of $1.26 beat the consensus mark by 17.8% and increased 22.3% on a year-over-year basis. The bottom line benefited from solid top-line growth and strong margin performance.

Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise

Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise
Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise

Booz Allen Hamilton Holding Corporation price-consensus-eps-surprise-chart | Booz Allen Hamilton Holding Corporation Quote

Revenues, Backlog & Headcount Increase Y/Y

Total revenues of $2.11 billion missed the Zacks Consensus Estimate by 1.2% but increased 4.3% on a year-over-year basis. Revenues, excluding billable expenses, were $1.47 billion, up 3.6% on a year-over-year basis. Billable expenses contributed 43.6% to revenues.

Total backlog increased 18% from the prior-year quarter’s reported figure to $29 billion. Funded backlog of $4.9 billion increased 8.8% year over year. Unfunded backlog was up 55% to $9.53 billion. Priced options were up 4.3% to $14.5 billion. Book-to-bill ratio was 2.03, up 14.7% year over year. Headcount of 29,228 increased 5.8% year over year.

Strong Margin Performance

Adjusted EBITDA amounted to $256 million, up 12.2% year over year. Adjusted EBITDA margin on revenues was 12.8%, up from the year-ago quarter’s figure of 11.3%. Adjusted EBITDA margin on revenues, excluding billable expenses, increased to 18.4% from 16.1% in the year-ago quarter.

Key Balance Sheet & Cash Flow Numbers

Booz Allen exited the fiscal second quarter with cash and cash equivalents of $788.7 million compared with $621.9 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.76 billion compared with $2.77 billion in the prior quarter.

The company used $470.4 million of net cash in operating activities. Capital expenditures were $20.6 million and free cash flow was $449.74 million. The company paid out dividends worth $50.23 million and repurchased shares worth $108.6 million in the reported quarter.

Reaffirmed Fiscal 2022 Outlook

Booz Allen continues to project revenue growth for fiscal 2022 at the 7-10% range. Adjusted EBITDA margin is anticipated in the mid-10% range. Net cash provided by operating activities is expected in the range of $800-$850 million.

Adjusted diluted EPS is expected in the range of $4.10-$4.30. The midpoint ($4.20) is below the Zacks Consensus Estimate of $4.21.

Booz Allen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Business Services Companies

Equifax’s EFX third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.

IQVIA’s IQV third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.

Omnicom’s OMC third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.


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