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Booz Allen Hamilton (BAH) Gains From Vision 2020 and VoLT
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Booz Allen Hamilton (BAH - Free Report) has had an impressive run over the past year. The stock has surged 60.5%, outperforming the 44.1% growth of the industry it belongs to and the 31.4% rise of the Zacks S&P 500 composite.
BAH reported better-than-expected third-quarter fiscal 2024 results. Quarterly adjusted earnings per share (EPS) of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
How Is BAH Doing?
Booz Allen’s sustainable expansion is led by the Vision 2020 strategy. This strategy focused on understanding the core mission of clients closely, increasing technicalities of work, attracting and retaining diverse talent, boosting innovation, creating a huge pool of external partners and alliances and expanding into commercial and international business. This led to exponential growth in organic revenues and rising profitability and fetched significant headcount and backlog growth. Revenues increased 10.7% year over year in fiscal 2023. We anticipate revenues to increase by 14.8% in fiscal 2024 and 4.4% in fiscal 2025 and 2026.
Booz Allen Hamilton Holding Corporation Revenue (TTM)
BAH’s VoLT strategy aims at integrating velocity, leadership and technology into the transformation process. The important areas to be focused on in the velocity front are increasing innovation, improving market position via mergers, acquisitions and partnerships and client-centric decision-making. The leadership front is inclined toward using leadership in identifying the needs of clients and scaling businesses. Finally, the technology front focuses on the development and expansion of next-generation technology and solutions.
Booz Allen’s addressable market is huge as it serves one of the largest consumers of technology and management consulting services, the government. The company serves the U.S. intelligence community, which expands its market even further. Further, BAH has numerous opportunities in the global commercial markets where penetration is relatively low.
Booz Allen's current ratio (a measure of liquidity) at the end of the third quarter of fiscal 2024 was at 1.68, higher than the year-ago quarter’s 1.44. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations. An increasing current ratio bodes well.
Zacks Rank and Other Stocks to Consider
Booz Allen Hamilton currently carries a Zacks Rank #2 (Buy).
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Booz Allen Hamilton (BAH) Gains From Vision 2020 and VoLT
Booz Allen Hamilton (BAH - Free Report) has had an impressive run over the past year. The stock has surged 60.5%, outperforming the 44.1% growth of the industry it belongs to and the 31.4% rise of the Zacks S&P 500 composite.
BAH reported better-than-expected third-quarter fiscal 2024 results. Quarterly adjusted earnings per share (EPS) of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
How Is BAH Doing?
Booz Allen’s sustainable expansion is led by the Vision 2020 strategy. This strategy focused on understanding the core mission of clients closely, increasing technicalities of work, attracting and retaining diverse talent, boosting innovation, creating a huge pool of external partners and alliances and expanding into commercial and international business. This led to exponential growth in organic revenues and rising profitability and fetched significant headcount and backlog growth. Revenues increased 10.7% year over year in fiscal 2023. We anticipate revenues to increase by 14.8% in fiscal 2024 and 4.4% in fiscal 2025 and 2026.
Booz Allen Hamilton Holding Corporation Revenue (TTM)
Booz Allen Hamilton Holding Corporation revenue-ttm | Booz Allen Hamilton Holding Corporation Quote
BAH’s VoLT strategy aims at integrating velocity, leadership and technology into the transformation process. The important areas to be focused on in the velocity front are increasing innovation, improving market position via mergers, acquisitions and partnerships and client-centric decision-making. The leadership front is inclined toward using leadership in identifying the needs of clients and scaling businesses. Finally, the technology front focuses on the development and expansion of next-generation technology and solutions.
Booz Allen’s addressable market is huge as it serves one of the largest consumers of technology and management consulting services, the government. The company serves the U.S. intelligence community, which expands its market even further. Further, BAH has numerous opportunities in the global commercial markets where penetration is relatively low.
Booz Allen's current ratio (a measure of liquidity) at the end of the third quarter of fiscal 2024 was at 1.68, higher than the year-ago quarter’s 1.44. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations. An increasing current ratio bodes well.
Zacks Rank and Other Stocks to Consider
Booz Allen Hamilton currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are HNI (HNI - Free Report) and PagSeguro Digital (PAGS - Free Report) .
HNI currently sports a Zacks Rank of 1 (Strong Buy). HNI has a long-term earnings growth expectation of 12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
HNI delivered a trailing four-quarter earnings surprise of 54.8%, on average.
PagSeguro Digital sports a Zacks Rank of 1 at present. PAGS has a long-term earnings growth expectation of 14.3%.
PAGS delivered a trailing four-quarter earnings surprise of 10.1%, on average.