Company Performance - Booz Allen Hamilton (BAH) closed at $108.07, with a daily increase of +1.29%, underperforming compared to the S&P 500's gain of 9.52% [1] - Over the past month, BAH shares have decreased by 3.04%, which is less severe than the Business Services sector's decline of 12.29% and the S&P 500's drop of 13.47% [2] Upcoming Earnings - Analysts expect Booz Allen Hamilton to report earnings of $1.59 per share, reflecting a year-over-year growth of 19.55% [3] - The consensus revenue estimate is $3.02 billion, indicating an 8.94% increase from the same quarter last year [3] Analyst Estimates - Recent changes in analyst estimates suggest a positive outlook for Booz Allen Hamilton's business operations and profit generation capabilities [4] - The Zacks Rank system, which evaluates these estimate changes, currently assigns BAH a rank of 3 (Hold) [6] Valuation Metrics - Booz Allen Hamilton has a Forward P/E ratio of 15.41, which is lower than the industry average of 19.49, suggesting it is trading at a discount [7] - The company has a PEG ratio of 1.1, compared to the Consulting Services industry's average PEG ratio of 1.29 [8] Industry Ranking - The Consulting Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Group 1 - Huron Consulting (HURN) has shown strong year-to-date performance, with a return of approximately 17.8%, significantly outperforming the Business Services sector average of 2% [4] - The Zacks Consensus Estimate for HURN's full-year earnings has increased by 3.4% over the past three months, indicating improving analyst sentiment and a more positive earnings outlook [4] - Huron Consulting holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the market in the near term [3] Group 2 - Huron Consulting is part of the Consulting Services industry, which consists of 13 companies and currently ranks 83 in the Zacks Industry Rank, with an average loss of 9.1% year-to-date [6] - In comparison, Logility Supply Chain Solutions (LGTY), another stock in the Business Services sector, has performed even better with a year-to-date increase of 28.9% and a Zacks Rank of 2 (Buy) [5][7] - The Technology Services industry, which includes Logility, has seen an average decline of 5.3% since the beginning of the year, highlighting Huron Consulting's relative strength within its industry [7]

Financial Data and Key Metrics Changes - Revenue in Q4 2024 increased by 3.8% year-over-year to $496.3 million, driven by strong demand from commercial energy clients [29] - Adjusted EBITDA margin expanded by 30 basis points to 11.2%, contributing to a 15% increase in non-GAAP EPS to $7.45 [7][39] - Full-year revenue was $2.02 billion, up 2.9% from the prior year, with adjusted EBITDA increasing by 6% year-over-year to $226 million [36][38] Business Line Data and Key Metrics Changes - Commercial energy revenues increased by 26% in 2024, driven by new contracts and expansions in energy efficiency programs [9] - Federal government revenues declined by 2.4% in Q4 due to lower pass-through costs, although labor-based revenues increased by approximately 4% [30] - International government revenue rose by 4.2% year-over-year to $30 million, reflecting new contract wins primarily with the UK government [31] Market Data and Key Metrics Changes - The company expects revenues from commercial, state and local, and international government clients to grow by at least 15% in 2025, accounting for over 55% of total revenues [16] - The federal government business is anticipated to face a maximum downside risk of 10% in 2025 due to contract terminations and stop work orders [19][25] Company Strategy and Development Direction - The acquisition of Applied Energy Group is expected to strengthen the company's competitive position in the energy advisory market [10] - The company aims to maintain adjusted EBITDA margins comparable to 2024 levels while navigating a transitional year in federal government business [48][49] - A diversified business model is emphasized, with over 55% of revenues expected from non-federal clients [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial energy sector, expecting robust growth despite potential federal policy impacts [60] - The company is preparing for a transitional year in 2025, with a focus on maintaining profitability and exploring new opportunities in technology and public health sectors [100][101] - Management highlighted the importance of agility and diversification in navigating the current dynamic business environment [24] Other Important Information - The company repurchased approximately 395,000 shares for $48 million from mid-November 2024 to date, reflecting confidence in the business outlook [43] - The year-end backlog was reported at $3.8 billion, with $1.9 billion funded, indicating stability in the business [44] Q&A Session Summary Question: Can you elaborate on the maximum downside risk for programmatic revenue? - Management indicated that the maximum downside risk of 10% is a conservative estimate based on detailed project-level risk analysis [54][56] Question: Is there any expected impact on the utility and energy business from federal initiatives? - Management does not foresee material changes in growth for the commercial utility business due to federal policy changes [60] Question: What is driving the expected 15% growth in non-federal business? - Growth is attributed to strong demand in commercial energy, new international contracts, and the acquisition of AEG [64] Question: Are there any contracts in backlog at risk of cancellation? - Management has not identified any current issues with contracts in the IT modernization business [68] Question: How does the company plan to maintain morale during potential revenue declines? - Management emphasized leveraging the diversified portfolio and maintaining transparency with staff [89]