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Booz Allen Hamilton (BAH) Stock Up 2% Since Q3 Earnings Beat

·4 min read

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

The earnings beat impressed the market as the stock jumped 2% since the release. The stock declined 8% over the past year compared with 4.6% decline 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 $1.02 beat the consensus mark by 5.2% but declined 1.9% 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 4.4% but increased 6.6% on a year-over-year basis. Revenues, excluding billable expenses, were $1.4 billion, up 6.2% on year over year. Billable expenses contributed 30.6% to revenues.

Total backlog increased 19.2% from the prior-year quarter’s reported figure to $27.8 billion. Funded backlog of $4 billion increased 11.7% year over year. Unfunded backlog was up 57.7% to $9.4 billion. Priced options were up 4.4% to $14.3 billion. Book-to-bill ratio was 0.39, down 21.9% year over year. Headcount of 29,453 increased 6.8% year over year.

Strong Margin Performance

Adjusted EBITDA amounted to $222.1 million, up 8.1% year over year. Adjusted EBITDA margin on revenues was 10.9%, up from the year-ago quarter’s figure of 10.8%. Adjusted EBITDA margin on revenues, excluding billable expenses, increased to 15.8% from 15.5% in the year-ago quarter.

Key Balance Sheet & Cash Flow Numbers

Booz Allen Hamilton exited the quarter with cash and cash equivalents of $642.9 million compared with $621.9 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.7 billion compared with $2.8 billion in the prior quarter.

The company generated $21.4 million of net cash from operating activities and capital expenditures were $21.9 million. The company paid out dividends worth $49.8 million and repurchased shares worth $82.8 million in the reported quarter.

Updated Fiscal 2022 Outlook

Booz Allen currently projects revenue growth at 5.7-7.2%, compared with the previous projection of 7-10%. Adjusted EBITDA margin on revenues is anticipated to be around 11% compared with the previous expectation of mid-10%. Net cash provided by operating activities is expected in the range of $700-$750 million, lower than the previous expectation of $800-$850 million. The company continues to expect adjusted EPS in the range of $4.1-$4.3 per share.

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

Robert Half International RHI delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.

Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1.

Automatic Data Processing ADP reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.


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