A strong earnings report sets the company up for growth in its new fiscal year.Government IT specialist Booz Allen Hamilton (BAH 3.39%) just topped quarterly expectations and sees the potential for more upside from here. Investors are buying in, sending shares up as much as 7% on Friday. As of 12:45 p.m. ET, the stock was up 4%.Strong results and a bright futureBooz Allen provides a range of technological services to government and private sector customers, with a heavy emphasis on the defense and intellige ...

Booz Allen Hamilton Holding Corp. (BAH) 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 ...

Booz Allen Hamilton Holding Corporation (NYSE:BAH) Q4 2024 Earnings Conference Call May 24, 2024 8:00 AM ET Company Participants Nathan Rutledge - Director and Head of Investor Relations Horacio Rozanski - President and Chief Executive Officer Matt Calderone - Executive Vice President and Chief Financial Officer Conference Call Participants Mariana Perez Mora - Bank of America Robert Spingarn - Melius Research Bert Subin - Stifel Seth Seifman - J.P. Morgan Jack Wilson - Truist Securities Cai von Rumohr - TD ...

Core Insights - Booz Allen Hamilton (BAH) reported revenue of $2.77 billion for the quarter ended March 2024, reflecting a year-over-year increase of 13.9% [1] - Earnings per share (EPS) for the quarter was $1.33, up from $1.01 in the same quarter last year, representing a surprise of +9.02% over the consensus estimate of $1.22 [1] Revenue Performance - Revenue excluding billable expenses was $1.93 billion, slightly above the average estimate of $1.91 billion, marking a year-over-year increase of 13.7% [2] - Revenue from Global Commercial Clients was $45.86 million, slightly exceeding the average estimate of $45.23 million, but down 3% year-over-year [2] - Revenue from U.S. Government-Civil Clients was $944.23 million, below the average estimate of $964.21 million, but up 14.5% year-over-year [2] - Total revenue from U.S. Government clients reached $2.73 billion, surpassing the estimated $2.66 billion, with a year-over-year increase of 14.2% [2] - Revenue from U.S. Government-Defense Clients was $1.34 billion, exceeding the average estimate of $1.24 billion, reflecting an 18.5% year-over-year increase [2] - Revenue from U.S. Government-Intelligence Clients was $444.47 million, slightly below the average estimate of $453.05 million, with a year-over-year change of +2.6% [2] Stock Performance - Booz Allen's shares have returned +4.9% over the past month, outperforming the Zacks S&P 500 composite's +4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Booz Allen Hamilton (BAH) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.02%. A quarter ago, it was expected that this defense contractor would post earnings of $1.13 per share when it actually produced earnings of $1.41, delivering a surprise of 24.78%.Over the last four quarters, ...

Financial Performance - Fiscal Year 2024 - Revenue increased by 15.2% to $10.7 billion[6, 38] - Revenue, Excluding Billable Expenses, increased by 14.4% to $7.4 billion[6, 38] - Net Income increased by 123.3% to $606 million[6, 40] - Adjusted EBITDA increased by 15.9% to $1,175 million[6, 41] - Adjusted Diluted EPS increased by 20.6% to $5.50[6, 41] Financial Performance - Fourth Quarter Fiscal Year 2024 - Revenue increased by 13.9% to $2.8 billion[6, 34] - Revenue, Excluding Billable Expenses, increased by 13.7% to $1.9 billion[6, 34] - Net Income increased significantly by 287.2% to $128 million[6, 36] - Adjusted EBITDA increased by 23.9% to $287 million[6, 36] - Adjusted Diluted EPS increased by 31.7% to $1.33[6, 37] Capital Allocation - In fiscal year 2024, the company deployed approximately $691.7 million in capital[11]

PART I [Business](index=6&type=section&id=Item%201.%20Business) Booz Allen Hamilton is a 110-year-old management and technology consulting firm primarily serving the U.S. government with solutions in AI, cybersecurity, and engineering [Overview](index=6&type=section&id=Overview) Booz Allen Hamilton leverages 110 years of strategic consulting, AI, cybersecurity, and engineering expertise to solve complex problems for federal and commercial clients - The company combines **110 years of strategic consulting** with expertise in artificial intelligence, cybersecurity, technology, and engineering to deliver solutions[11](index=11&type=chunk) - Booz Allen supports critical missions for nearly all U.S. cabinet-level departments and commercial clients across various sectors[12](index=12&type=chunk) [Human Capital Management](index=7&type=section&id=Human%20Capital%20Management) The company employs 34,200 people and emphasizes a culture of belonging, diversity, equity, and inclusion (DEI), with a significant portion of its workforce identifying as female or a person of color - As of March 31, 2024, the company has **34,200 employees**, focusing on creating an inclusive environment for thriving talent[16](index=16&type=chunk) Workforce Diversity Statistics (as of March 31, 2024) | Metric | Percentage | | :--- | :--- | | Global workforce identifying as female | 36% | | Senior management identifying as female | 37% | | U.S. workforce identifying as a person of color | 35% | | Senior management identifying as a person of color | 21% | | Employees identifying as a veteran | ~28% | | Employees holding security clearances | ~65% | - The company's annual Employee Experience Survey shows **83% of employees** report a favorable experience, exceeding competitor benchmarks[17](index=17&type=chunk) [Our Long-Term Growth Strategy](index=10&type=section&id=Our%20Long-Term%20Growth%20Strategy) Fiscal year 2024 marked the second year of the company's VoLT (Velocity, Leadership, Technology) strategy, designed to accelerate growth by operating with increased speed, agility, and scale - The **VoLT strategy** serves as the company's blueprint for accelerated growth, emphasizing Velocity, Leadership, and Technology[27](index=27&type=chunk) - Key pillars of the VoLT strategy include **doubling down on innovation**, strategic M&A, scaling mission-technology businesses, and developing solutions from mission insights[27](index=27&type=chunk) [Our Clients](index=11&type=section&id=Our%20Clients) Booz Allen serves a diverse client base, with 98% of fiscal 2024 revenue from U.S. government contracts, maintaining long-standing relationships across defense, intelligence, and civil agencies Fiscal 2024 Client Revenue Breakdown | Client Segment | Revenue (billions) | % of Total Revenue | | :--- | :--- | :--- | | Defense Clients | $5.1 | 47.1% | | Intelligence Clients | $1.8 | 16.6% | | Civil Clients | $3.7 | 34.3% | | Global Commercial Clients | $0.173 | 1.6% | - In fiscal 2024, **98% of revenue** was derived from U.S. government contracts, with the Department of Veterans Affairs as the single largest client at **13% of revenue**[29](index=29&type=chunk) - The company maintains long-term relationships with key clients, including **over 80 years** with the U.S. Navy and **over 75 years** with the U.S. Army[31](index=31&type=chunk) [Contracts](index=13&type=section&id=Contracts) The company's revenue is primarily generated through Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicles, accounting for over 85% of fiscal 2024 revenue across 2,650 active task orders - Over **85% of fiscal 2024 revenue** was derived from **2,650 active task orders** under IDIQ contract vehicles, demonstrating a diverse contract base[37](index=37&type=chunk) Top 5 IDIQ Contracts by Fiscal 2024 Revenue | IDIQ Contract Vehicle | FY2024 Revenue (millions) | % of Total Revenue | | :--- | :--- | :--- | | GSA Alliant 2 | $1,625.5 | 15.2% | | OASIS | $1,225.2 | 11.5% | | VA T4NG IDIQ | $765.9 | 7.2% | | Liberty IT - VA T4NG IDIQ | $585.9 | 5.5% | | DTIC IAC MAC IDIQ | $571.8 | 5.4% | [Backlog](index=15&type=section&id=Backlog) As of March 31, 2024, the company's total contract backlog increased to $33.8 billion, composed of funded, unfunded, and priced options Contract Backlog Comparison (in millions) | Backlog Component | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Funded | $4,822 | $4,619 | | Unfunded | $9,463 | $9,519 | | Priced options | $19,533 | $17,064 | | **Total backlog** | **$33,818** | **$31,202** | - Total backlog grew from **$31.2 billion** in fiscal 2023 to **$33.8 billion** in fiscal 2024, primarily driven by an increase in priced options[44](index=44&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks primarily related to its heavy dependence on U.S. government contracts, intense competition, cybersecurity threats, and the ability to retain skilled personnel - The company's primary risk is its dependence on U.S. government contracts, which accounted for **98% of revenue** in fiscal 2024, making it vulnerable to changes in government spending or reputation[58](index=58&type=chunk) - A significant majority of revenue comes from task orders under IDIQ contract vehicles, where failure to win or loss of prime position could materially impact operating results[63](index=63&type=chunk) - Internal system failures or cybersecurity breaches pose a material risk, potentially leading to loss of client data, reputational damage, and financial liability amidst evolving cyber threats[69](index=69&type=chunk) - The business depends on attracting and retaining highly qualified employees with security clearances, where intense competition and lengthy processes could limit growth and client service[79](index=79&type=chunk) [Cybersecurity](index=46&type=section&id=Item%201C.%20Cybersecurity) Booz Allen's cybersecurity risk management is a core component of its enterprise risk management program, overseen by the Board and guided by NIST standards, with no material incidents reported - The cybersecurity risk management program is integrated into the overall Enterprise Risk Management (ERM) Program, with regular oversight from the Board of Directors and its committees[125](index=125&type=chunk) - The program, led by the CIO and CISO, is guided by the NIST Cybersecurity Framework and complies with extensive government regulations including DFARS and CMMC 2.0[128](index=128&type=chunk) - The company has not experienced any cybersecurity incidents during the reporting period that materially affected its business strategy, results of operations, or financial condition[131](index=131&type=chunk) [Properties](index=48&type=section&id=Item%202.%20Properties) The company leases all its facilities, totaling approximately 2.24 million square feet, with its corporate headquarters in McLean, Virginia, and many employees working at government-provided sites - The company leases all its facilities, totaling approximately **2.24 million square feet** of office and facility space[132](index=132&type=chunk) - Corporate headquarters is located at 8283 Greensboro Drive, McLean, Virginia 22102[132](index=132&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with previously disclosed stockholder class action and derivative lawsuits dismissed, and no material adverse effects expected from ongoing matters - The stockholder class action lawsuit, Langley v. Booz Allen, was dismissed, and the appeal was voluntarily dismissed with prejudice on **April 23, 2024**[133](index=133&type=chunk) - The shareholder derivative complaint, Thum v. Rozanski, related to the same DOJ investigation, was voluntarily dismissed without prejudice on **May 20, 2024**[135](index=135&type=chunk) [Information about our Executive Officers](index=49&type=section&id=Information%20about%20our%20Executive%20Officers) This section provides biographical information for the company's executive officers, including President and CEO Horacio D. Rozanski, CFO Matthew A. Calderone, and COO Kristine Martin Anderson - Horacio D. Rozanski serves as the President and Chief Executive Officer, having joined the company in **1992** and becoming CEO in **2015**[137](index=137&type=chunk) - The executive team includes key leaders such as **Matthew A. Calderone (CFO)**, **Kristine Martin Anderson (COO)**, and sector heads for Civil, Global Defense, and National Security[137](index=137&type=chunk)[138](index=138&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Booz Allen's Class A Common Stock trades on the NYSE under "BAH", with the company paying recurring quarterly dividends and repurchasing shares, significantly outperforming market indices - The Board declared a quarterly cash dividend of **$0.51 per share** on **May 24, 2024**, payable on **June 28, 2024**[142](index=142&type=chunk) Share Repurchases for Quarter Ended March 31, 2024 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 197,225 | $126.76 | | February 2024 | 348,126 | $143.63 | | March 2024 | 169,454 | $147.45 | | **Total** | **714,805** | **N/A** | - As of March 31, 2024, approximately **$483.2 million** remained available for repurchases under the company's share repurchase program[144](index=144&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2024, Booz Allen's revenue grew 15.2% to $10.7 billion, with operating income surging 126.8% to $1.0 billion, driven by strong demand and the absence of a prior-year legal reserve [Results of Operations](index=67&type=section&id=Results%20of%20Operations) For fiscal 2024, revenue increased by 15.2% to $10.7 billion, and operating income rose significantly by 126.8% to $1.0 billion, primarily due to the absence of a large legal reserve from fiscal 2023 Fiscal 2024 vs. Fiscal 2023 Performance (in millions) | Metric | Fiscal 2024 | Fiscal 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $10,661.9 | $9,258.9 | 15.2% | | Operating income | $1,013.4 | $446.8 | 126.8% | | Net income attributable to common stockholders | $605.7 | $271.8 | 122.9% | - The significant increase in operating income was primarily due to a **$350.0 million legal reserve** in fiscal 2023 compared to a **$27.5 million reserve** in fiscal 2024[195](index=195&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company had $1.6 billion in total liquidity, with net cash from operations at $258.8 million, impacted by a $377.5 million legal settlement payment Key Liquidity and Cash Flow Metrics (in millions) | Metric | As of/For Fiscal Year 2024 | As of/For Fiscal Year 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $554.3 | $404.9 | | Total debt | $3,411.8 | $2,812.1 | | Net cash provided by operating activities | $258.8 | $602.8 | | Net cash used in investing activities | $(90.6) | $(468.0) | | Net cash used in financing activities | $(18.8) | $(425.9) | - The decrease in operating cash flow was primarily impacted by a **$377.5 million outflow** related to the settlement of a U.S. Department of Justice matter[203](index=203&type=chunk) - In August 2023, the company issued **$650.0 million** of **5.950% Senior Notes** due 2033[327](index=327&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes affecting its variable-rate debt, mitigated by interest rate swaps with a notional amount of $550.0 million as of March 31, 2024 - The company's main market risk is interest rate volatility, primarily related to its variable-rate Senior Credit Facility[220](index=220&type=chunk) - A hypothetical **25 basis point interest rate increase** would have increased interest expense by approximately **$2.6 million** in fiscal 2024[220](index=220&type=chunk) - As of March 31, 2024, the company had interest rate swaps with an aggregate notional amount of **$550.0 million** to hedge against interest rate movements[220](index=220&type=chunk) [Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2024, including balance sheets, income statements, and cash flow statements, with an unqualified audit opinion [Consolidated Balance Sheets](index=79&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $6.56 billion, total liabilities $5.52 billion, and total stockholders' equity $1.05 billion, reflecting changes in accounts receivable and long-term debt Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $2,738,909 | $2,288,058 | | Goodwill | $2,343,789 | $2,338,399 | | **Total Assets** | **$6,563,688** | **$6,550,652** | | Total Current Liabilities | $1,692,190 | $1,897,054 | | Long-term debt, net | $3,349,941 | $2,770,895 | | **Total Liabilities** | **$5,517,126** | **$5,558,650** | | **Total Stockholders' Equity** | **$1,046,562** | **$992,002** | [Consolidated Statements of Operations](index=80&type=section&id=Consolidated%20Statements%20of%20Operations) For fiscal 2024, revenue increased 15.2% to $10.66 billion, operating income rose to $1.01 billion, and net income attributable to common stockholders was $605.7 million, or $4.59 per diluted share Consolidated Statement of Operations Summary (in thousands, except per share data) | Metric | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 | | :--- | :--- | :--- | :--- | | Revenue | $10,661,896 | $9,258,911 | $8,363,700 | | Operating income | $1,013,403 | $446,848 | $685,181 | | Net income attributable to common stockholders | $605,706 | $271,791 | $466,740 | | Diluted EPS | $4.59 | $2.03 | $3.44 | [Consolidated Statements of Cash Flows](index=82&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal 2024, net cash from operating activities was $258.8 million, impacted by a legal settlement, while cash used in investing and financing activities decreased, leading to a $149.4 million cash increase Consolidated Cash Flow Summary (in thousands) | Cash Flow Category | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $258,838 | $602,822 | $736,526 | | Net cash used in investing activities | $(90,640) | $(468,016) | $(867,725) | | Net cash used in financing activities | $(18,803) | $(425,854) | $(163,846) | | **Net increase (decrease) in cash** | **$149,395** | **$(291,048)** | **$(295,045)** | [Controls and Procedures](index=115&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2024, with an unqualified auditor opinion - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of **March 31, 2024**[402](index=402&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of **March 31, 2024**, supported by an unqualified opinion from the independent auditor[404](index=404&type=chunk)[408](index=408&type=chunk) [Other Information](index=117&type=section&id=Item%209B.%20Other%20Information) Dr. Ralph W. Shrader will retire as Board Chair, with CEO Horacio D. Rozanski assuming the role, and the Compensation Committee approved fiscal 2025 compensation increases and special equity grants for executives - Dr. Ralph W. Shrader will retire as Board Chair effective **July 24, 2024**, with CEO Horacio D. Rozanski becoming Chair and Mark Gaumond appointed Lead Independent Director[413](index=413&type=chunk) - The Compensation Committee approved fiscal 2025 compensation increases for the CFO and COO, and awarded special one-time equity grants of **$3 million** to the CFO, **$3 million** to the COO, and **$1 million** to the Chief Legal Officer[414](index=414&type=chunk) PART III [Directors, Executive Compensation, Security Ownership, and Accountant Fees](index=117&type=section&id=Item%2010,%2011,%2012,%2013,%2014) Information for Items 10 through 14, covering directors, executive compensation, security ownership, related party transactions, and accounting fees, is incorporated by reference from the 2024 Proxy Statement - Information regarding Directors, Executive Officers, Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accounting Fees and Services (Item 14) is incorporated by reference from the **2024 Proxy Statement**[417](index=417&type=chunk)[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk)[423](index=423&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=118&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Annual Report, including financial statements and a comprehensive index of exhibits such as governance documents and debt agreements - This section provides an index of all exhibits filed with the Form 10-K, including governance documents, debt agreements, and executive compensation plans[426](index=426&type=chunk)

Booz | Allen | Hamilton® BOOZ ALLEN HAMILTON ANNOUNCES FOURTH QUARTER AND FULL YEAR FISCAL 2024 RESULTS + Exceptional Performance Delivers Company's Best Fiscal Year Since IPO + Company Enters Third Year of its Investment Thesis with Excellent Momentum, Supported by Robust Organic Revenue Growth12, Strong Headcount Growth, and Solid Backlog + Annual Revenue Increase of 15.2 percent over the Prior Year Period to $10.7 billion, 14.5 percent Organic Revenue Growth, and Revenue, Excluding Billable Expenses2 Gro ...

Group 1: Company Overview - Booz Allen Hamilton (BAH) is set to report fiscal fourth-quarter earnings, concluding a year of significant growth acceleration [1] - The company is recognized as a primary resource for the government in modernizing military capabilities and preparing for conflicts, with a substantial backlog due to increased government spending [1][2] Group 2: Financial Performance - Wall Street anticipates Booz Allen's earnings to increase by 22% in fiscal Q4 to $1.23 per share, with revenue projected to grow by 11.7% year-over-year to $2.72 billion [2] - For fiscal 2025, earnings per share are expected to rise approximately 10% to $5.92, while revenue is forecasted to increase about 8% to $11.48 billion [2] Group 3: Stock Performance - Booz Allen's stock surged 13.6% to $147.52 following the Q3 earnings report, and it has been trading within a buy zone after reaching a peak on March 4 [3] - The stock first surpassed the buy point on May 6 and is currently climbing, with a recent price of $153.76 [3]

Core Viewpoint - Booz Allen Hamilton Holding Corporation (BAH) is set to report its fourth-quarter fiscal 2024 results on May 24, with a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in three of the last four quarters, averaging a surprise of 12.7% [1] Group 1: Q4 Expectations - The consensus estimate for Q4 revenues is $2.72 billion, indicating an 11.9% year-over-year growth, driven by improvements in Defense, Civil, and Intelligence sectors [2] - Revenue growth in Defense is expected to be supported by Aerospace and Joint Combatant Command accounts, while Civil revenues are anticipated to grow due to health account and mission-critical cyber and digital solutions [2] - The Intelligence business is projected to benefit from the National Cyber and Defense Intelligence account and strong hiring [2] - The Zacks Consensus Estimate for earnings is $1.22 per share, reflecting a 20.8% increase from the previous year, attributed to strong margins and improved cost management [2] Group 2: Earnings Prediction Model - The current model does not predict a definitive earnings beat for BAH, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [3]