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Booz Allen Hamilton (BAH) to Report Q4 Earnings: What's Up? (Revised)

Zacks Equity Research

Booz Allen Hamilton Holding Corporation BAH will report fourth-quarter fiscal 2019 results next month.

In the fiscal third quarter, the company delivered a positive earnings surprise of 13.3%. It has a trailing four-quarter average positive surprise of 19.3%.

We observe that the company's shares have gained 47.2% over the past year, outperforming its industry’s gain of 24.2%.

Factors at Play

Booz Allen’s major focus is on revenues excluding billable expenses as these drive most of its profitability. The revenues is expected to witness significant growth in the to-be-reported quarter, driven by continued strength in client demand and contract performance.

Through the implementation of Vision 2020, a sustainable long-term growth strategy, Booz Allen is seeing significantly higher backlog growth, a shift in talent to more technical expertise and strong performance in the global commercial market.

Strong contract level performance, operational excellence and cost management are expected to expand margins in the to be reported quarter. Margin expansion along with revenue growth and a lower tax rate are expected to drive earnings growth.

Zacks Rank & Upcoming Releases

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

Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Aptiv APTV, S&P Global SPGI and CRA International CRAI. All of them are slated to report on May 2, before market open.

(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)

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