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Booz Allen Hamilton (BAH) Q4 Earnings Beat, Stock Up 2.8%

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·4-min read
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Booz Allen Hamilton Holding Corp. BAH reported impressive fourth-quarter fiscal 2022 results wherein both earnings and revenues beat the Zacks Consensus Estimate.

Such better-than-expected results impressed the market watchers as the stock has inched up 2.8% since the earnings release on May 20.

Quarterly adjusted earnings per share (excluding 18 cents from non-recurring items) of 86 cents per share beat the consensus mark by 3.6% but declined 3.4% on a year-over-year basis.

Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise

Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise
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

Revenues, Backlog & Headcount

Total revenues of $2.24 billion beat the Zacks Consensus Estimate by 1% and increased 13.1% on a year-over-year basis. Revenues, excluding billable expenses, were $1.58 billion, up 14.5% year over year. Billable expenses contributed 41.5% to revenues.

Total backlog increased 21.7% from the prior-year quarter’s reported figure to $29.2 billion. Funded backlog of $3.7 billion increased 5.7% year over year. Unfunded backlog was up 62.7% to $9.9 billion. Priced options were up 8.3% to $15.6 billion. Book-to-bill ratio was 1.66, up 20.3% year over year. Headcount of 29,317 increased 5.7% year over year.

Margin Performance

Adjusted EBITDA amounted to $205 million, up 6.3% year over year. Adjusted EBITDA margin on revenues was 9.2%, down from the year-ago quarter’s 9.7%. Adjusted EBITDA margin on revenues, excluding billable expenses, fell to 13% from 13.9% in the year-ago quarter.

Key Balance Sheet & Cash Flow Numbers

Booz Allen exited the quarter with cash and cash equivalents of $695.9 million compared with $642.7 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.73 billion compared with $2.75 billion in the prior quarter.

BAH generated $255.4 million of net cash from operating activities while capital expenditures were $28.4 million. Booz Allen paid out dividends worth $57.4 million and repurchased shares worth $103.7 million in the reported quarter.

Fiscal 2023 Outlook

Booz Allen currently projects revenue growth of 5-9%.

BAH now expects adjusted EPS in the range of $4.15-$4.45 per share. The Zacks Consensus Estimate is now anticipated to be $4.51.

Adjusted EBITDA is expected to be $950–$1,000 million.

Adjusted EBITDA margin on revenues is anticipated in the range of mid-to-high 10%.

Net cash provided by operating activities is expected in the range of $850-$950 million.

Booz Allen currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots

Within the broader Business Services sector, ManpowerGroup Inc. MAN, Omnicom Group Inc. OMC and Equifax Inc. EFX recently reported first-quarter 2022 results.

ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.

Omnicom reported impressive first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.


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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
 
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
 
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