Core Insights - Analysts project Booz Allen Hamilton (BAH) will report quarterly earnings of $1.45 per share, a 5.1% increase year over year, with revenues expected to reach $2.94 billion, reflecting a slight decline of 0.1% from the same quarter last year [1] - The consensus EPS estimate has been revised upward by 0.3% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Estimates - Revenue from U.S. Government Defense Clients is forecasted to reach $1.53 billion, representing an increase of 8.1% from the prior-year quarter [5] - Revenue from U.S. Government Civil Clients is estimated at $973.22 million, indicating a decrease of 8.5% from the prior-year quarter [5] - Revenue from U.S. Government Intelligence Clients is expected to be $483.07 million, reflecting a growth of 4.8% from the prior-year quarter [6] Backlog and Market Performance - Total Backlog is projected to be $40.23 billion, up from $36.18 billion a year ago [6] - Booz Allen shares have increased by 8.6% in the past month, outperforming the Zacks S&P 500 composite, which rose by 5.9% [6] - Despite recent performance, Booz Allen holds a Zacks Rank 5 (Strong Sell), suggesting expected underperformance in the near future [6]

Core Insights - Booz Allen Hamilton (BAH) is anticipated to report a year-over-year earnings increase of +5.1% with earnings per share (EPS) expected at $1.45, despite a slight revenue decline of -0.1% to $2.94 billion for the quarter ended June 2025 [3][12] - The upcoming earnings report is scheduled for July 25, and stock movement may depend on whether actual results exceed or fall short of expectations [2][3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 0.25% higher in the last 30 days, indicating a slight positive sentiment among analysts [4] - However, Booz Allen's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.82%, suggesting a bearish outlook [12] Historical Performance - In the last reported quarter, Booz Allen exceeded EPS expectations by +1.26%, with three out of the last four quarters showing earnings beats [13][14] - Despite this history, the current Zacks Rank for Booz Allen is 5 (Strong Sell), complicating predictions for an earnings beat in the upcoming report [12][17] Comparison with Industry Peers - Equifax (EFX), another player in the consulting services industry, is expected to report a +5.5% year-over-year change in EPS at $1.92, with revenues projected to increase by +5.9% to $1.51 billion [18][19] - Equifax has a positive Earnings ESP of +1.46% and a Zacks Rank of 3 (Hold), indicating a higher likelihood of beating consensus EPS estimates [19]

Group 1: Company Overview - Assertio (ASRT) is a specialty pharmaceutical company focused on branded prescription medications for neurology, inflammation, and pain [1] - Bridgeline Digital (BLIN) operates as a digital engagement company, offering a platform that integrates Web Content Management, e-commerce, e-marketing, Social Media management, and Web Analytics [2] - Booz Allen Hamilton (BAH) provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber expertise to governments, corporations, and not-for-profit organizations [3] Group 2: Earnings Estimates - The Zacks Consensus Estimate for Assertio's current year earnings has been revised downward by 83.3% over the last 60 days [1] - Bridgeline Digital's current year earnings estimate has been revised downward by almost 47.1% over the last 60 days [2] - Booz Allen Hamilton's current year earnings estimate has been revised downward by 6.8% over the last 60 days [3]

Group 1 - The stock market is currently experiencing a strong upward trend, indicated by the CNN Business Fear & Greed index reaching "Greed" territory, one of the highest readings in the past 52 weeks [1] - This shift is notable as the index was previously at "Extreme Fear" just a few months ago, highlighting a significant change in market sentiment [1]

Group 1 - Booz Allen Hamilton Corp. has been named "Stock to Study" by BetterInvesting Magazine for September 2025, indicating potential interest from investors regarding its stock valuation [1] - The upcoming report will provide comprehensive fundamental data on Booz Allen, including sales, earnings, pre-tax profit, and return on equity, accessible through the National Association of Investors Corp. [2] - The same issue of BetterInvesting Magazine will also feature a fundamental review of Nike Inc., suggesting that it is considered undervalued and worthy of further study [3]

Company Overview - Booz Allen Hamilton, founded in 1914, had $10.7 billion in FY24 revenue[1] - The company has a significant presence in the technology sector, with 22,000 technologists, including 6,000 software engineers and 8,000 cyber professionals[15] - Booz Allen Hamilton has 2,500 AI practitioners and is a leading AI provider to the Federal Government with approximately $750 million in AI-related revenue[15,17] - The company has invested approximately $3 billion in advanced technology and innovation over the last decade[12,17] Financial Performance and Outlook - The company's FY25 forecast includes revenue growth of 12.0%-13.0%, with adjusted EBITDA between $1.31 billion and $1.33 billion, resulting in an approximate 11% adjusted EBITDA margin[53] - The company anticipates adjusted diluted EPS of $6.25-$6.40 and free cash flow between $850 million and $925 million for FY25[53] - Booz Allen Hamilton's backlog demonstrates continued momentum, with historical and LTM book-to-bill ratios indicating strong demand[44] Strategic Focus - The company's VoLT strategy focuses on Velocity, Technology, and Leadership to drive continued growth in a rapidly changing environment[18,20,21] - Booz Allen Hamilton is focused on scaling businesses in Defense Tech, Space, and Digital Transformation, and holds a leading position in Quantum technology[17,24] - The company is partnering across the technology ecosystem, evaluating 6,400 early-stage companies and recommending 450 tech companies to clients[26]

Investment Rating - The report downgrades Booz Allen Hamilton (BAH) to Sell from Neutral, indicating limited revenue and earnings growth potential in the medium term, with valuation still having downside risk [1][45]. Core Insights - Medium-term revenue growth is expected to be closer to flat due to pressure on federal civilian spending and shifting priorities within the Department of Defense (DoD) [1][2]. - Margin pressures are anticipated as the industry shifts towards more outcomes-based contracting and fixed-price contracts, which could increase risk for contractors [3][31]. - BAH's current trading multiples are 17X P/E and 12X EBITDA on CY26E, which are in line with historical averages but could decline further if earnings remain flat [4][41]. Revenue Outlook - Federal civilian agency budgets are under pressure, leading to expectations of organic revenue growth for BAH being closer to flat for the next several years [2][18]. - The company reported a book-to-bill ratio of 0.71X for the March 2025 quarter, indicating potential challenges in securing new contracts [17][25]. Margin Analysis - The industry is experiencing a shift towards more fixed-price contracts, which may lead to increased competition and pressure on margins [3][31]. - Historical trends show that during periods of revenue pressure, margins in the government services industry have declined due to increased price competition [31][34]. Valuation Metrics - BAH's valuation metrics indicate it trades at 17X CY26E P/E and 12X CY26E EBITDA, which are consistent with its 15-year historical average [4][41]. - The report suggests that if growth and margin pressures continue, BAH's valuation could decline further [4][41]. Financial Projections - The report provides revised financial forecasts for BAH, with expected revenues of $12,220 million for FY26 and $12,342 million for FY27, reflecting lower organic growth assumptions [40]. - Adjusted EBITDA is projected at $1,335 million for FY26 and $1,337 million for FY27, indicating a downward revision from previous estimates [40][45].

Core Viewpoint - Goldman Sachs analyst Noah Poponak downgraded Booz Allen Hamilton from Neutral to Sell, lowering the price forecast from $108 to $94, citing limited revenue and earnings growth in the medium term and ongoing valuation risks [1]. Group 1: Revenue and Earnings Outlook - Medium-term revenue growth is now expected to be closer to flat due to pressure on federal civilian spending and shifting priorities within the U.S. Department of Defense [2]. - Organic revenue growth for Booz Allen Hamilton is anticipated to be flat for the next few years, which may take time for the stock to absorb after its previous strong growth [4]. Group 2: Contracting and Margins - The analyst highlights a shift toward more outcomes-based and fixed-price contracting in the sector, raising concerns about increased risk for contractors and potential pressure on margins [4]. - Federal civilian agency budgets are under pressure, with other government spending areas taking priority, which may impact Booz Allen Hamilton's performance [3]. Group 3: Market Reaction - Booz Allen Hamilton shares closed down by 4.70% to $104.66 following the downgrade [5].

Core Viewpoint - Booz Allen Hamilton's shares have experienced significant volatility following a downgrade by Goldman Sachs, reflecting concerns over medium-term earnings growth and revenue projections [1][2][3] Group 1: Stock Performance - Shares of Booz Allen Hamilton fell by as much as 4.9% before recovering slightly to a 4% decline [1] - The stock had previously sold off by a double-digit percentage after the fiscal-fourth-quarter earnings release [1] Group 2: Analyst Downgrade - Goldman Sachs downgraded Booz Allen Hamilton from neutral to sell, lowering the price target from $108 to $94 [2] - The current stock price is noted at $104.75 [2] Group 3: Earnings Growth Outlook - Goldman Sachs analysts project medium-term earnings growth for Booz Allen as "flat," with revenue growth expected between 0% and 4% for fiscal 2026, down from 12.4% last year [3] - Adjusted earnings are projected to be in the range of $6.20 to $6.55, compared to $6.35 last year [3] Group 4: Long-term Growth Potential - Despite short-term challenges, there is a high likelihood that Booz Allen's growth will resume after this year, particularly if the civil business stabilizes [6][7] - The defense and intelligence sectors, which account for 65% of revenue, are expected to grow in double digits, supporting overall company growth [6] - Historically, Booz Allen has achieved an 11.7% organic growth rate over the past three years [6] - If growth resumes, the P/E multiple could return to the low-20s, which has been the average over the past decade [7]

Core Insights - Booz Allen Hamilton Holding Corp. (BAH) reported mixed fourth-quarter fiscal 2025 results, with earnings exceeding estimates while revenues fell short [1][2] Financial Performance - Adjusted earnings per share were $1.61, surpassing the Zacks Consensus Estimate by 1.3% and increasing 21.1% year-over-year [2] - Revenues totaled $2.3 billion, missing the consensus estimate by 1.5% but showing a year-over-year increase of 7.3% [2] - Excluding billable expenses, revenues were $2.05 billion, reflecting a 6.2% year-over-year growth [2] Backlog and Book-to-Bill Ratio - Total backlog increased by 14.8% year-over-year to $37 billion, although it fell short of the estimated $38.7 billion [3] - Funded backlog rose 5.6% to $4.4 billion, missing the anticipated $4.9 billion, while unfunded backlog increased by 4.9% to $8.8 billion, also below the estimate of $9.8 billion [3] - Priced options grew by 21.9% to $23.8 billion, slightly missing the expectation of $23.9 billion [4] - The book-to-bill ratio improved to 1.39 from 1.22 in the previous year [4] EBITDA and Margins - Adjusted EBITDA reached $1.32 billion, an 11.9% increase from the prior year, aligning with estimates [5] - The adjusted EBITDA margin remained flat at 11% year-over-year [5] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $885 million, up from $554 million in the previous quarter [6] - Long-term debt increased by 16.9% year-over-year to $3.9 billion [6] - The company generated $218 million in net cash from operating activities, with capital expenditures of $1.2 billion and free cash flow of $911 million [6] Fiscal 2026 Outlook - For fiscal 2026, BAH anticipates revenues between $12 billion and $12.5 billion, with expected growth of 0-4% [7] - Adjusted EPS is projected to be between $700 million and $800 million, with capital expenditures around $110 million [7]