U.S. Markets closed

Booz Allen's (BAH) Q4 Earnings Beat, Stock Increases 2.5%

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Booz Allen Hamilton Holding Corp. BAH reported mixed fourth-quarter fiscal 2021 results with earnings beating the Zacks Consensus Estimate and revenues missing the same.

The stock gained 2.5% since the earnings release on May 21, as the company’s earnings guidance for 2022 was strong. Adjusted earnings per share are currently anticipated in the range of $4.10-4.30 per share, higher than the current Zacks Consensus Estimate of $4.04.

Quarterly adjusted earnings (excluding 54 cents from non-recurring items) per share of 89 cents beat the consensus mark by 8.5% and increased 21.9% on a year-over-year basis. The bottom line benefited from solid top-line growth and strong margin performance.

In the past year, the stock has gained 12.5% compared with 16.8% rally of the industry it belongs to.

Revenues, Backlog & Headcount Increase Y/Y

Total revenues of $1.98 billion missed the Zacks Consensus Estimate by a whisker but increased marginally on a year-over-year basis. Revenues, excluding billable expenses, were $1.38 billion, up 1.5% on a year-over-year basis. Billable expenses contributed 43.1% to revenues.

Total backlog increased 15.9% from the prior-year quarter’s reported figure to $24 billion. Funded backlog of $3.5 billion increased 2.9% year over year. Unfunded backlog was up 35.5% to $6.1 billion. Priced options went up 12.7% to $14.4 billion. Book-to-bill ratio was 1.38, up more than 100% year over year. Headcount of 27,727 increased 2% year over year.

Operating Results

Adjusted EBITDA amounted to $192.9 million, up 11.8% year over year. Adjusted EBITDA margin on revenues was 9.7%, up from the year-ago quarter’s figure of 8.8%. Adjusted EBITDA margin on revenues, excluding billable expenses, increased to 13.9% from 12.7% in the year-ago quarter.

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

Balance Sheet & Cash Flow

Booz Allen Hamilton exited fiscal fourth quarter with cash and cash equivalents of $990 million compared with $1.34 billion at the end of the prior quarter. Long-term debt (net of current portion) was $2.3 billion, flat on a sequential basis.

The company used in $80.3 million of net cash from operating activities. Capital expenditures were $33.2 million and free cash flow was $113.5 million.

The company paid out dividends worth $51.2 million and repurchased shares worth $170 million in the reported quarter.

Fiscal 2022 Outlook

The company’s revenue-growth projection is 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 Other Business Services Companies

Equifax’s EFX first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s RHI first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s OMC first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Robert Half International Inc. (RHI) : Free Stock Analysis Report

Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research