Booz Allen Hamilton Holding Corporation ( BAH Quick Quote BAH - Free Report) reported better-than-expected second-quarter fiscal 2021 results.
The stock gained 10.1% since the earnings release on Oct 30 as the company raised earnings guidance for fiscal 2021. Booz Allen raised adjusted earnings per share guidance to $3.60-$3.75 from $3.40-$3.60 projected earlier. The midpoint ($3.67) of the guidance is below the Zacks Consensus Estimate of $3.73.
Adjusted earnings per share of $1.03 beat the consensus mark by 12% and improved 27.2% 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 $2.02 billion surpassed the Zacks Consensus Estimate by 2.3% and increased 11% year over year. Revenues, excluding billable expenses, were $1.42 billion, up 9.2% on a year-over-year basis. Billable expenses accounted for 42.6% of revenues.
Total backlog increased 7.4% from the prior-year quarter’s reported figure to $24.6 billion. Funded backlog of $4.5 billion increased 2.3% year over year. Unfunded backlog was up 14.7% to $6.2 billion. Priced options went up 5.3% to $13.9 billion. Book-to-bill ratio was 1.77, down 33.9% year over year. Headcount of 27,638 increased 2.4% year over year.
Adjusted EBITDA amounted to $228.4 million, up 19.2% year over year. Adjusted EBITDA margin on revenues stayed flat year over year at 10.9%. Adjusted EBITDA margin on revenues, excluding billable expenses, increased to 16.1% from 15% in the year-ago quarter.
Balance Sheet & Cash Flow
Booz Allen Hamilton exited fiscal second quarter with cash and cash equivalents of $1,275.2 million compared with $620.6 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.3 billion compared with $2 billion at the end of the previous quarter. The company generated $425.6 million of net cash from operating activities. Capital expenditures were $18 million and free cash flow was $407.6 million for the September-end quarter.
The company paid out dividends worth $43 million and repurchased shares worth $30.4 million in the reported quarter.
Revised Fiscal 2021 Outlook
The company’s revenue-growth projection is now at 7-9% range (previous projection: 6-10%). Adjusted EBITDA margin on revenues is anticipated in the low to mid 10% range (previous projection: 10%). Operating cash flow is expected in the range of $600-$650 million (previous projection: $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 Quick Quote EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the company’s guidance of $1.30-$1.40. The Interpublic Group of Companies ( IPG Quick Quote IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis. IQVIA Holdings ( IQV Quick Quote IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and inched up 1.9% on a year-over-year basis. The reported figure was above the company’s guidance of $1.47-$1.55. 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>>