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Booz Allen (BAH) Barely Moves Post Q1 Earnings & Revenues Beat
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Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive first-quarter fiscal 2024 results, with both earnings and revenues beating the respective Zacks Consensus Estimate.
Quarterly adjusted earnings (excluding 25 cents from non-recurring items) per share of $1.47 beat the consensus estimate by 17.6% and increased 30.1% on a year-over-year basis.
The market seems to be unimpressed by the results as the shares have not moved since the earnings release on Jul 28.
Revenues, Backlog & Headcount Increase Y/Y
Total revenues of $2.65 billion beat the Zacks Consensus Estimate by 6.4% and increased 18% on a year-over-year basis. Revenues, excluding billable expenses, were $1.84 billion, up 16.9% on a year-over-year basis.
Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise
Total backlog increased 9.3% from the prior-year quarter’s reported figure to $31.3 billion. Funded backlog of $4.9 billion increased 22.5% year over year. Unfunded backlog declined 9.5% to $9 billion.
Priced options were up 18.5% to $17.3 billion. The book-to-bill ratio was 1.03, up from the figure of 0.72 reported in the year-ago quarter. The headcount of 32,574 increased 11.2% year over year.
EBITDA Margins Increase
Adjusted EBITDA amounted to $307 million, up 21.5% year over year. Adjusted EBITDA margin on revenues was 9.5%, up from the year-ago quarter’s figure of 9.2%. Adjusted EBITDA margin on revenues, increased by 3.6% to 11.6%.
Key Balance Sheet & Cash Flow Numbers
Booz Allen exited the quarter with cash and cash equivalents of $209.6 million, compared with $404.9 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.76 billion, compared with $2.77 billion in the prior quarter.
The company used $71.5 million of net cash from operating activities. Capital expenditures were $10.5 million and free cash flow was $82 million.
Fiscal 2024 Outlook
Booz Allen currently projects revenue growth to be in the range of 7-11%. It expects adjusted earnings per share (EPS) in the range of $4.8-$4.95. The current Zacks Consensus Estimate of $4.93 is above the midpoint ($4.875) of the EPS guidance.
Adjusted EBITDA is expected to be between $1.075 billion and $1.105 billion. Adjusted EBITDA margin on revenues is anticipated to be in the range of 10-11%. Net cash provided by operating activities is still expected in the range of $160-$260 million. The company expects the effective tax rate to be in the range of 23-25%.
Interpublic Group of Companies (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.
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Booz Allen (BAH) Barely Moves Post Q1 Earnings & Revenues Beat
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive first-quarter fiscal 2024 results, with both earnings and revenues beating the respective Zacks Consensus Estimate.
Quarterly adjusted earnings (excluding 25 cents from non-recurring items) per share of $1.47 beat the consensus estimate by 17.6% and increased 30.1% on a year-over-year basis.
The market seems to be unimpressed by the results as the shares have not moved since the earnings release on Jul 28.
Revenues, Backlog & Headcount Increase Y/Y
Total revenues of $2.65 billion beat the Zacks Consensus Estimate by 6.4% and increased 18% on a year-over-year basis. Revenues, excluding billable expenses, were $1.84 billion, up 16.9% on a year-over-year basis.
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
Total backlog increased 9.3% from the prior-year quarter’s reported figure to $31.3 billion. Funded backlog of $4.9 billion increased 22.5% year over year. Unfunded backlog declined 9.5% to $9 billion.
Priced options were up 18.5% to $17.3 billion. The book-to-bill ratio was 1.03, up from the figure of 0.72 reported in the year-ago quarter. The headcount of 32,574 increased 11.2% year over year.
EBITDA Margins Increase
Adjusted EBITDA amounted to $307 million, up 21.5% year over year. Adjusted EBITDA margin on revenues was 9.5%, up from the year-ago quarter’s figure of 9.2%. Adjusted EBITDA margin on revenues, increased by 3.6% to 11.6%.
Key Balance Sheet & Cash Flow Numbers
Booz Allen exited the quarter with cash and cash equivalents of $209.6 million, compared with $404.9 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.76 billion, compared with $2.77 billion in the prior quarter.
The company used $71.5 million of net cash from operating activities. Capital expenditures were $10.5 million and free cash flow was $82 million.
Fiscal 2024 Outlook
Booz Allen currently projects revenue growth to be in the range of 7-11%. It expects adjusted earnings per share (EPS) in the range of $4.8-$4.95. The current Zacks Consensus Estimate of $4.93 is above the midpoint ($4.875) of the EPS guidance.
Adjusted EBITDA is expected to be between $1.075 billion and $1.105 billion. Adjusted EBITDA margin on revenues is anticipated to be in the range of 10-11%. Net cash provided by operating activities is still expected in the range of $160-$260 million. The company expects the effective tax rate to be in the range of 23-25%.
Booz Allen currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Earnings Snapshot
Interpublic Group of Companies (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.