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Booz Allen (BAH) to Report Q4 Earnings: What's in Store?

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Booz Allen Hamilton Holding Corporation (BAH - Free Report) will report fourth-quarter fiscal 2020 results on May 26, before the bell.

In the fiscal third quarter, the company delivered a positive earnings surprise of 5.3%. It has a trailing four-quarter average positive surprise of 10.3%.

The company's shares have gained 16.9% over the past year, outperforming the 4.8% rally of the industry it belongs to.

Expectations This Time Around

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.94 billion, indicating year-over-year growth of 9%. Continued strong client demand and increase in headcount are expected to have driven the company’s top line. In the fiscal third quarter, revenues of $1.85 billion increased 11.2% year over year.

The consensus estimate for EPS is pegged at 70 cents, suggesting a year-over-year increase of 9.4%. Top-line growth, strong contract level performance, efficient management of business and an ongoing shift toward higher-margin technically focused work are likely to have benefited the bottom line. In the fiscal third quarter, adjusted EPS of 80 cents improved 11.1% on a year-over-year basis.

Zacks Rank and Stocks to Consider

Booz Allen currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader Zacks Business Services sector include CoreLogic , SailPoint Technologies and Elastic N.V. (ESTC - Free Report) each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for CoreLogic, SailPoint and Elastic N.V. is 12%, 15%, and 26%, respectively.

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