Financial Performance - The company reported third quarter fiscal year 2025 revenue of $2.92 billion, representing a 13.5% increase compared to the prior year[4] - Organic revenue growth for the quarter was 12.6%, while revenue excluding billable expenses grew by 11.8%[4] - Net income increased by 28.4% to $187.0 million, and adjusted net income rose by 7.4% to $197.9 million[4] - Adjusted EBITDA for the quarter was $331.7 million, reflecting a 14.1% increase, with an adjusted EBITDA margin on revenue of 11.4%[4] - Diluted EPS was $1.45, up 30.6% from $1.11, while adjusted diluted EPS increased to $1.55, a 9.9% rise from $1.41[4] - Revenue for the three months ended December 31, 2024, was $2,917,190, an increase of 13.5% compared to $2,569,801 for the same period in 2023[28] - Net income for the three months ended December 31, 2024, was $186,950, representing a 28.4% increase from $145,644 in the same quarter of 2023[28] - Adjusted diluted EPS for the nine months ended December 31, 2024, was $5.73, compared to $3.62 for the same period in 2023, reflecting a 58.3% increase[28] - Adjusted Operating Income for the three months ended December 31, 2024, was $304,951, up 15.9% from $263,107 in the prior year[33] - Adjusted EBITDA for the three months ended December 31, 2024, was $331,721, representing a 14.1% increase from $290,623 in the same quarter of 2023[36] - Net income for the nine months ended December 31, 2024, was $742,295 thousand, a significant increase of 55.5% compared to $477,750 thousand for the same period in 2023[32] Cash Flow and Liquidity - For the nine months ended December 31, 2024, free cash flow was $716.6 million, significantly up from $64.5 million in the prior year[8] - Free Cash Flow for the three months ended December 31, 2024, was $133,591, with a conversion rate of 81%[33] - Net cash provided by operating activities reached $789,991 thousand, compared to $115,068 thousand in the previous year, indicating a substantial improvement in cash flow[32] - Cash and cash equivalents decreased to $453,539 thousand at the end of the period from $554,257 thousand at the beginning, reflecting a decrease of 18.2%[32] - Cash dividends paid amounted to $198,437 thousand, compared to $186,787 thousand in the previous year, indicating an increase of 6.4%[32] - The company reported a net cash used in investing activities of $183,765 thousand, compared to $68,254 thousand in the prior year, highlighting increased investment activity[32] - The company experienced a net decrease in cash and cash equivalents of $100,718 thousand during the period, contrasting with a net increase of $196,951 thousand in the previous year[32] Guidance and Future Outlook - The company updated its fiscal year 2025 guidance, projecting revenue growth of 12.0% - 13.0% and adjusted diluted EPS of $6.25 - $6.40[9] - The company anticipates continued growth driven by strategic acquisitions and expansion efforts in the upcoming fiscal periods[35] - The company expects variability in future GAAP financial results due to unpredictable factors affecting stock price and equity grants[20] - Adjusted EBITDA and Adjusted EBITDA Margin on Revenue guidance for fiscal 2025 is anticipated but specific reconciliations are not available without unreasonable efforts[21] Backlog and Book-to-Bill Ratio - Total backlog increased by 14.8% to $39.4 billion, with a quarterly book-to-bill ratio of 0.37x and a trailing twelve-month book-to-bill ratio of 1.41x[4] - Funded backlog increased to $5,330 million in December 2024 from $5,246 million in December 2023, while total backlog rose to $39,413 million from $34,321 million[42] - Book-to-bill ratio for the three months ended December 31, 2024, was 0.37, down from 0.72 in the same period of 2023, but increased to 1.60 for the nine months ended December 31, 2024, compared to 1.40 in 2023[42] Employee and Headcount - The company experienced a 6.0% year-over-year increase in client staff headcount, totaling approximately 1,800 additional employees[7] - Total headcount reached 35,900 in December 2024, up from 33,800 in December 2023, with client staff headcount increasing to 32,700 from 30,900[43] Assets and Liabilities - Total assets increased to $6,820,989 thousand as of December 31, 2024, up from $6,563,688 thousand on March 31, 2024, representing a growth of approximately 3.9%[30] - Total current liabilities rose to $1,814,329 thousand, an increase of 7.2% from $1,692,190 thousand as of March 31, 2024[30] - Long-term debt, net of current portion, decreased slightly to $3,291,215 thousand from $3,349,941 thousand, showing a reduction of approximately 1.7%[30] - Stockholders' equity increased to $1,209,917 thousand as of December 31, 2024, up from $1,046,562 thousand, reflecting a growth of 15.6%[30] - Total Debt as of December 31, 2024, was $3,373,715, with Net Debt at $2,920,176 after accounting for cash[36] Legal and Regulatory Matters - The company has set aside reserves associated with the U.S. Department of Justice's investigation, highlighting potential legal challenges[41] - The company faced unfavorable tax assessments from the District of Columbia, affecting revenue from recoverable expenses[40] - Expenses related to debt financing activities were incurred during the second quarter of fiscal 2024, indicating ongoing financial management efforts[41] Acquisitions - The company is involved in acquisition efforts, including EverWatch in fiscal 2023 and PGSC in fiscal 2025, impacting financial statements[40] - The total backlog acquired from PGSC during the nine months ended December 31, 2024, contributed to the overall backlog growth[42]

Booz Allen Hamilton Holding Corporation (BAH) is scheduled to report its third-quarter fiscal 2025 results on Jan. 31, before the bell.See the Zacks Earnings Calendar to stay ahead of market-making news.The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the past four quarters and missing once, delivering an average surprise of 11.7%.Q3 Expectations for BAHThe consensus estimate for revenues in the to-be-reported quarter is pegged at $2.84 billi ...

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of BAH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice ...

The U.S. business services sector has performed well supported by strong fundamentals of the domestic economy. The latest example is the blowout labor market data for December. The economy added 256,000 jobs surpassing the consensus estimate of 156,000 and November’s data of 221,000. The unemployment rate fell to 4.1% in December from 4.2% in the prior month.Moreover, the U.S. GDP grew at the rate of 1.6%, 3% and 3.1%, respectively, in the first three quarters of 2024. On Jan 9, the Atlanta Fed GDPNow track ...

Market Overview - The stock market is preparing for its first decisive move in 2025, with major banks like JPMorgan and tech companies like Taiwan Semiconductor set to release earnings reports [1] - Strong earnings guidance from big tech and key sectors is crucial to avoid a market recalibration [1] - The bullish outlook for 2025 remains intact despite near-term uncertainties [1] Investment Strategy - Investors are advised not to chase expensive stocks early in 2025, as there are numerous value stocks with strong earnings potential [2] - A screening method is introduced to identify stocks with a combination of value and improving earnings outlooks [2][3] - The screen focuses on Zacks Rank 1 (Strong Buy) or 2 (Buy) stocks with P/E and P/S ratios below industry medians [4][5] - The screen also considers quarterly earnings growth rates above industry medians and uses a blend of upgrades and estimate revisions to select top stocks [9] Booz Allen Hamilton (BAH) Analysis - Booz Allen Hamilton's stock has surged 360% over the past decade, outperforming its sector (45%) and the S&P 500 (205%) [6] - The company's sales grew at a compound annual growth rate of 7.4% between FY20 and FY24, supported by multi-year government contracts [10] - BAH is projected to grow revenue by 13% in FY25 and 7% in FY26, with adjusted EPS expected to increase by 14% and 11%, respectively [14] - The stock trades at 19.9X forward 12-month earnings, near its 10-year median, and offers 17% value compared to its sector [15] Industry and Company Positioning - Booz Allen Hamilton operates in consulting, serving federal government clients in defense, national security, and critical infrastructure, as well as commercial clients in aerospace, health, energy, and financial services [13] - The company benefits from steady revenue streams due to the sensitive nature of its government contracts, which are often renewed [10] - Despite a recent 28% drop from its October highs, BAH's strong earnings outlook and support at 52-week lows make it a compelling buy-and-hold value stock [6][15]

Investors interested in stocks from the Consulting Services sector have probably already heard of Booz Allen Hamilton (BAH) and Gartner (IT) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with ...

Booz Allen Hamilton (BAH) ended the recent trading session at $132.47, demonstrating a +1.84% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.54%. On the other hand, the Dow registered a loss of 1.63%, and the technology-centric Nasdaq decreased by 1.63%.Prior to today's trading, shares of the defense contractor had lost 4.07% over the past month. This has lagged the Business Services sector's loss of 3.87% and the S&P 500's loss of 2.2% in that time.Analysts a ...

Economic strength, encouraging service activities, increased adoption and the success of the work-from-home trend enable Zacks Consulting Services industry players to support the demand environment.Driven by these positives, investors interested in the industry would do well to keep stocks like Booz Allen Hamilton Holding Corporation (BAH) , FTI Consulting, Inc. (FCN) and Charles River Associates (CRAI) in their portfolio.About the Consulting Services Industry Companies grouped under the Consulting Services ...

Booz Allen Hamilton (BAH) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a chan ...