A month has gone by since the last earnings report for Booz Allen Hamilton (BAH Quick QuoteBAH - Free Report) . Shares have added about 17% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Booz Allen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Booz Allen Beats on Earnings in Q2

Booz Allenreported better-than-expected second-quarter fiscal 2021 results.

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, increasing 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 $24.6billion. 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.

Operating Results

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, in comparison to $2 billion at the end of the previous quarter. The company generated $566 million of net cash from operating activities. Capital expenditure was $38.1 million and free cash flow was $407.6million 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

Booz Allen raised adjusted earnings per share guidance to $3.60-$3.75 from $3.40-$3.60 projected earlier. The company’s revenue-growth projection is now at 7-9% range (previous projection: 6-10%). Adjusted EBITDA margin on revenues is anticipated to be 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).

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

At this time, Booz Allen has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Booz Allen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.