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Booz Allen Hamilton Holding Corporation (BAH - Free Report) reported mixed first-quarter fiscal 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings per share of 93 cents beat the consensus mark by 6.9% and improved 12% on a year-over-year basis. The bottom line benefited from top-line growth, strong contract-level performance and operational management.
Revenues, Backlog & Headcount Increase Y/Y
Total revenues of $1.96 billion lagged the Zacks Consensus Estimate by a slight margin and increased 7.1% year over year. Revenues, excluding billable expenses, were $1.41 billion, increasing 10.5% on a year-over-year basis. Billable expenses accounted for 28.1% of revenues.
Total backlog increased 15.9% from the prior-year quarter’s reported figure to $23 billion. Funded backlog of $3.44 billion increased 7.6% year over year. Unfunded backlog was up 8.8% to $4.73 billion. Priced options went up 4.9% to $12.8 billion. Book-to-bill ratio was 2.17, up 68.2% year over year. Headcount of 27,381 increased 3.8% year over year.
Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise
Adjusted EBITDA amounted to $213 million, up 6.8% year over year. Adjusted EBITDA margin on revenues stayed flat year over year at 10.9%. Adjusted EBITDA margin on revenues, excluding billable expenses, decreased to 15.1% from 15.6% in the year-ago quarter.
Balance Sheet & Cash Flow
Booz Allen Hamilton exited fiscal first quarter with cash and cash equivalents of $620.6 million compared with $450.8 million at the end of the prior quarter. Long-term debt (net of current portion) was $2 billion, roughly flat with the previous quarter. The company generated $140.4 million of net cash from operating activities. Capital expenditure was $20.1 million and free cash flow was $120.4 million for the March-end quarter.
The company paid out dividends worth $43.8 million and repurchased shares worth $85.9 million in the reported quarter.
Fiscal 2021 Outlook
The company’s revenue-growth projection is 6-10%. The adjusted earnings per share guidance is $3.40-$3.60. The midpoint ($3.50) of the guided range is below the Zacks Consensus Estimate of $3.59.
Adjusted EBITDA margin on revenues is anticipated to be 10%. Operating cash flow is expected in the range of $550-$600 million.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
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Booz Allen's (BAH) Q1 Earnings Beat Estimates, Improve Y/Y
Booz Allen Hamilton Holding Corporation (BAH - Free Report) reported mixed first-quarter fiscal 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings per share of 93 cents beat the consensus mark by 6.9% and improved 12% on a year-over-year basis. The bottom line benefited from top-line growth, strong contract-level performance and operational management.
Revenues, Backlog & Headcount Increase Y/Y
Total revenues of $1.96 billion lagged the Zacks Consensus Estimate by a slight margin and increased 7.1% year over year. Revenues, excluding billable expenses, were $1.41 billion, increasing 10.5% on a year-over-year basis. Billable expenses accounted for 28.1% of revenues.
Total backlog increased 15.9% from the prior-year quarter’s reported figure to $23 billion. Funded backlog of $3.44 billion increased 7.6% year over year. Unfunded backlog was up 8.8% to $4.73 billion. Priced options went up 4.9% to $12.8 billion. Book-to-bill ratio was 2.17, up 68.2% year over year. Headcount of 27,381 increased 3.8% year over year.
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
Operating Results
Adjusted EBITDA amounted to $213 million, up 6.8% year over year. Adjusted EBITDA margin on revenues stayed flat year over year at 10.9%. Adjusted EBITDA margin on revenues, excluding billable expenses, decreased to 15.1% from 15.6% in the year-ago quarter.
Balance Sheet & Cash Flow
Booz Allen Hamilton exited fiscal first quarter with cash and cash equivalents of $620.6 million compared with $450.8 million at the end of the prior quarter. Long-term debt (net of current portion) was $2 billion, roughly flat with the previous quarter. The company generated $140.4 million of net cash from operating activities. Capital expenditure was $20.1 million and free cash flow was $120.4 million for the March-end quarter.
The company paid out dividends worth $43.8 million and repurchased shares worth $85.9 million in the reported quarter.
Fiscal 2021 Outlook
The company’s revenue-growth projection is 6-10%. The adjusted earnings per share guidance is $3.40-$3.60. The midpoint ($3.50) of the guided range is below the Zacks Consensus Estimate of $3.59.
Adjusted EBITDA margin on revenues is anticipated to be 10%. Operating cash flow is expected in the range of $550-$600 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 (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>