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Booz Allen reports higher fiscal 1st-qtr profit

McLEAN, Va. (AP) -- Defense contractor Booz Allen Hamilton Holding Corp. said Wednesday that first-quarter income rose 13.5 percent despite flat sales as the company cut costs.

Booz Allen, which hired Edward Snowden as a national security computer systems analyst before he leaked details of secret surveillance programs, said that it won large new and renewed contracts from the U.S. Army, Navy and Veterans Affairs Department during the latest quarter.

"We are focused on the important things that we can control in the midst of unprecedented external factors and uncertain market conditions," said Chairman and CEO Ralph Shrader.

Booz Allen's billable hours have been squeezed by federal budget constraints, and it has cut staff, although it didn't give numbers.

The company said that net income was $70.3 million, or 48 cents per share, compared with $61.9 million, or 43 cents per share, a year earlier.

It said that excluding items such as stock-based compensation expenses, it would have earned 50 cents per share.

Analysts expected adjusted earnings of 39 cents per share, according to FactSet.

Revenue in the quarter ended June 30 was flat at $1.43 billion, slightly above analysts' forecast of $1.41 billion. The cost of revenue fell 3.6 percent, or nearly $26 million.

Booz Allen repeated its forecast of a low single-digit percentage decline in revenue and expects adjusted earnings of $1.55 to $1.65 per share in the fiscal year ending next March. Analysts expect $1.56 per share on revenue of $5.64 billion, which represents a 2 percent decline from the prior year.

The shares closed Tuesday at $19.32, up 48 cents. They have gained 39 percent for the year.