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

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Booz Allen Hamilton Holding Corp. (BAH - Free Report) 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.

 

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 - Free Report) 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 - Free Report) 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 - Free Report) 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.

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