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Booz Allen (BAH) Stock Down 4% Despite Q1 Earnings Beat

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

The earnings beat failed to impress the market, with the stock slipping 3.6% since the earnings release. The stock declined 5% in the year-to-date period against 12.5% rally of the industry it belongs to.

Booz Allen Hamilton Holding Corporation Price

Booz Allen Hamilton Holding Corporation Price
Booz Allen Hamilton Holding Corporation Price

Booz Allen Hamilton Holding Corporation price | Booz Allen Hamilton Holding Corporation Quote

Quarterly adjusted earnings per share of $1.07 beat the consensus mark by 11.5% and increased 15.1% on a year-over-year basis. The bottom line benefited from solid top-line growth and strong margin performance.

Revenues, Backlog & Headcount Increase Y/Y

Total revenues of $2 billion missed the Zacks Consensus Estimate by 1.6% but increased 1.7% on a year-over-year basis. Revenues, excluding billable expenses, were $1.4 billion, up 1.9% on a year-over-year basis. Billable expenses contributed 27.9% to revenues.

Total backlog increased 16.5% from the prior-year quarter’s reported figure to $26.8 billion. Funded backlog of $3.5 billion increased 1.6% year over year. Unfunded backlog was up 90.7% to $9 billion. Priced options were down 3.7% to $14.3 billion. Book-to-bill ratio was 1.3, down 40.1% year over year. Headcount of 28,558 increased 4.3% year over year.

Strong Margin Performance

Adjusted EBITDA amounted to $238.1 million, up 11.8% year over year. Adjusted EBITDA margin on revenues was 12%, up from the year-ago quarter’s figure of 10.9%. Adjusted EBITDA margin on revenues, excluding billable expenses, increased to 16.6% from 15.1% in the year-ago quarter.

Key Balance Sheet & Cash Flow Numbers

Booz Allen Hamilton exited fiscal fourth quarter with cash and cash equivalents of $621.9 million compared with $991 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.8 billion compared with $2.3 billion in the prior quarter.

The company used $10.7 million of net cash in operating activities. Capital expenditures were $9 million and free cash flow was $19.7 million. The company paid out dividends worth $51.6 million and repurchased shares worth $123.8 million in the reported quarter.

Reaffirmed Fiscal 2022 Outlook

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

Booz Allen Hamilton 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 EFX reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s INFO second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.

Omnicom OMC reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.


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