Core Insights - Booz Allen Hamilton Holding Corporation (BAH) reported strong third-quarter fiscal 2025 results, with adjusted earnings per share of $1.55, exceeding the Zacks Consensus Estimate by 4.7% and increasing 10% year-over-year. Revenues reached $2.9 billion, surpassing the consensus estimate by 2.7% and growing 13.5% year-over-year [1] Financial Performance - The company has shown significant operational efficiency improvements, with adjusted operating income rising 18.4% year-over-year in fiscal 2024 and an operating income margin expansion of approximately 30 basis points [2] - Booz Allen returned $209.1 million, $235.7 million, and $253.4 million through share repurchases in fiscals 2022, 2023, and 2024, respectively, alongside dividend payments totaling $418.9 million, $223.9 million, and $404.1 million over the same period [4] Market Position and Strategy - Booz Allen is well-positioned in the cybersecurity and AI sectors, capitalizing on the growing demand for secure digital solutions across industries, which enhances its competitive edge and broadens its client base [3] - The company has invested in digital transformation initiatives and data-driven solutions to improve client offerings and streamline internal operations [2] Challenges and Competition - Rising operating expenses are a concern, with increases of 9.5% in fiscal 2024, 14.8% in fiscal 2023, and 8.1% in fiscal 2022, which may impact profitability [5] - The consulting and government services sectors are highly competitive, requiring Booz Allen to continuously innovate and maintain cost efficiency to secure government contracts and private sector opportunities [6] - The need for investment in technology and talent to stay competitive strains resources, complicating the balance between growth and profitability [7]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging opportunities [1] - The service offers a Free Two-Week Trial for potential investors to explore top ideas within exclusive income-focused portfolios [1] Group 2 - There is no current stock, option, or similar derivative position in any of the companies mentioned, but a beneficial long position may be initiated in the near future [2] - The article expresses personal opinions and is not compensated for the content, indicating an independent analysis [2] Group 3 - The article is intended for informational purposes and does not constitute financial advice, encouraging readers to conduct their own due diligence [3] - Past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but these stocks also carry higher risks and volatility [1] Group 1: Company Overview - Booz Allen Hamilton (BAH) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 12.9%, with projected EPS growth of 15% this year, surpassing the industry average of 9.8% [4] Group 2: Financial Metrics - Booz Allen's year-over-year cash flow growth is reported at 14.6%, exceeding the industry average of 9.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years stands at 13.6%, compared to the industry average of 8.6% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Booz Allen have been revised upward, with a 1.2% increase in the Zacks Consensus Estimate over the past month [7] - The combination of positive earnings estimate revisions and a Growth Score of A positions Booz Allen favorably for potential outperformance [9]

Core Viewpoint - Booz Allen Hamilton (BAH) has experienced a significant downtrend, with a 17% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - BAH's stock has faced heavy selling pressure, leading to an RSI reading of 24.11, indicating it is oversold and may soon experience a trend reversal [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions when the reading falls below 30, suggesting potential entry opportunities for investors [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is a strong consensus among sell-side analysts to raise earnings estimates for BAH, resulting in a 1.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6]. - BAH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7].

Core Insights - Booz Allen Hamilton Holding Corp. (BAH) reported strong third-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][2] Financial Performance - Adjusted earnings per share were $1.55, surpassing the Zacks Consensus Estimate by 4.7% and increasing 10% year-over-year [2] - Revenues reached $2.9 billion, beating the consensus estimate by 2.7% and showing a year-over-year growth of 13.5% [2] - Revenues, excluding billable expenses, amounted to $2 billion, reflecting an 11.8% increase year-over-year [2] Backlog and Orders - Total backlog increased by 14.8% year-over-year to $39.4 billion, close to the estimate of $39.5 billion [4] - Funded backlog was $5.3 billion, a 1.6% increase, while unfunded backlog rose to $9.3 billion, also up by 1.6% [4] Operational Metrics - Priced options rose by 24.5% to $24.7 billion, exceeding expectations [5] - The book-to-bill ratio was 0.37, down from 0.72 in the previous year [5] - Headcount increased by 6.2% year-over-year to 35,800 [5] Profitability - Adjusted EBITDA was $331.7 million, a 14.1% increase from the previous year, surpassing projections [6] - Adjusted EBITDA margin on revenues was 11.4%, up 10 basis points year-over-year [6] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $453.5 million, down from $558.7 million in the previous quarter [7] - Long-term debt remained flat at $3.3 billion [7] - Generated $150.8 million in net cash from operating activities, with capital expenditure of $17.2 million and free cash flow of $133.6 million [9] Future Outlook - For fiscal 2025, BAH anticipates revenue growth of 12-13% and adjusted EPS guidance of $6.25-$6.4 [10] - Adjusted EBITDA is expected to be between $1.31 billion and $1.33 billion, with an anticipated EBITDA margin of approximately 11% [10] - Projected net cash from operating activities is between $950 million and $1.025 billion, with free cash flow expected to be between $850 million and $925 million [10]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth sto ...

For the quarter ended December 2024, Booz Allen Hamilton (BAH) reported revenue of $2.92 billion, up 13.5% over the same period last year. EPS came in at $1.55, compared to $1.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.84 billion, representing a surprise of +2.71%. The company delivered an EPS surprise of +4.73%, with the consensus EPS estimate being $1.48.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

EARNINGS CALL PRESENTATION Chairman, Chief Executive Officer & President MATT CALDERONE Executive Vice President, Chief Financial Officer DUSTIN DARENSBOURG Head of Investor Relations Fiscal Year 2025, Third Quarter January 31, 2025 CALL PARTICIPANTS HORACIO ROZANSKI 2 DISCLAIMER Forward Looking Safe Harbor Statement Certain statements contained in this presentation and in related comments by our management include "forward-looking statements" within the meaning of the Private Securities Litigation Reform A ...

Defense IT contractor Booz Allen Hamilton (BAH -0.17%) delivered a quarterly beat, but its guidance was a little short of heightened expectations.Investors are stepping away from the stock, sending shares down as much as 6% at the open and down 2.5% as of 10:30 a.m. ET.Signs of weaknessBooz Allen Hamilton provides IT and other services primarily to military and civilian government agencies. The stock was trending higher for most of the last year on a series of strong earnings reports, but post-election unce ...

Booz Allen Hamilton (BAH) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.48 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.73%. A quarter ago, it was expected that this defense contractor would post earnings of $1.48 per share when it actually produced earnings of $1.81, delivering a surprise of 22.30%.Over the last four quarters, ...