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Booz Allen (BAH) Earnings & Revenues Beat Estimates in Q4

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Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.

BAH’s quarterly adjusted earnings per share of $1.33 surpassed the Zacks Consensus Estimate by 9% and increased 31.7% from the year-ago quarter. The company reported revenues of $2.77 billion, which beat the consensus estimate by 1.8% and increased 13.9% year over year. Revenues, excluding billable expenses, were $1.93 billion, up 13.7% on a year-over-year basis.

The company’s shares have gained 66.2% in the past year, outperforming the 46.6% rally of the industry it belongs to and 28.1% growth of the Zacks S&P 500 Composite.


The total backlog increased 8.4% from the year-ago quarter to $33.82 billion. This figure missed our estimate of $33.91 billion. The funded backlog of $4.82 billion moved up 4.4% on a year-over-year basis. The unfunded backlog declined marginally to $9.46 billion.

Priced options rose 14.5% to $19.53 billion. The book-to-bill ratio was 0.82 compared with 1.47 in fourth-quarter fiscal 2023. The headcount of 34,234 improved 7.2% on a year-over-year basis.

EBITDA Margins Rise

Adjusted EBITDA amounted to $286.82 million, a 23.9% rise from the year-ago quarter. It surpassed our projection of $278.6 million. The adjusted EBITDA margin on revenues increased to 10.3%, up 80 basis points year over year.

Key Balance Sheet & Cash Flow Numbers

Booz Allen exited the quarter with cash and cash equivalents of $554.25 million compared with $601.81 million in the preceding quarter. Long-term debt (net of current portion) was $3.34 billion compared with $3.37 billion in the prior quarter.

The company used $143.77 million of net cash from operating activities. Capital expenditure was $16.17 million. The free cash flow was $192.1 million.

Updated FY24 Outlook

BAH projects revenue growth of 8-11% compared with the 14-15% mentioned previously. It expects an adjusted EPS of $5.80-$6.05 compared with the $5.25-$5.40 stated previously. The mid-point ($5.93) of the company’s revised guidance range is higher than the Zacks Consensus Estimate of $5.39.

Adjusted EBITDA is expected to be $1.26-1.30 billion, whereas it reported $1.16-$1.18 billion in the preceding quarter. The adjusted EBITDA margin on revenues is anticipated to be 11%. Net cash provided by operating activities is projected at $825-925 million, revised from the previously stated $200-$275 million.

Booz Allen currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Stocks to Consider

Investors interested in the broader Business Services sector can consider some other top-ranked stocks mentioned below.

Maximus, Inc. (MMS - Free Report) reported impressive second-quarter fiscal 2024 results.

MMS’s quarterly adjusted earnings of $1.57 per share beat the Zacks Consensus Estimate by 19.9% and increased 96.3% on a year-over-year basis. Revenues of $1.35 billion beat the consensus mark by 5.4% and rose 11.7% from the year-ago quarter.

Equifax Inc. (EFX - Free Report) reported mixed first-quarter 2024 results.

EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

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