Booz Allen Hamilton shares climb 3% after exceeding profit expectations despite falling short on revenue

MCLEAN, Virginia – On Friday, Booz Allen Hamilton Holding Corporation (NYSE:BAH) revealed its fourth-quarter financial outcomes, surpassing profit projections while its revenue fell short of anticipated levels.

The shares of the advanced technology firm saw an increase of 3.68% in pre-market trading following the announcement, as investors placed emphasis on robust margin performance and an enhanced outlook for fiscal year 2027.

The corporation reported adjusted earnings per share of $1.78 for the fourth quarter, exceeding the analyst consensus of $1.34 by a margin of $0.44. Nevertheless, revenue amounted to $2.8 billion, missing the forecast of $2.87 billion and reflecting a year-over-year decrease of 6.4% from the $2.97 billion recorded in the corresponding period of the previous year.

Net income experienced a growth of 6.2% to reach $205 million, while the adjusted EBITDA margin relative to revenue expanded by 50 basis points, settling at 11.1%.

For the fiscal year 2027, Booz Allen provided guidance indicating adjusted EPS between $6.00 and $6.35, with a midpoint of $6.18, slightly above the consensus estimate of $6.08. The company anticipates revenue to range from $11.2 billion to $11.7 billion, with a midpoint of $11.45 billion, modestly surpassing the consensus figure of $11.3 billion.

“During a demanding year, Booz Allen achieved strong profitability while continuing to accelerate our transformation,” stated Horacio Rozanski, Chairman and CEO. “We are entering FY27 with significant momentum and are advantageously positioned for the upcoming year.”

The company announced a record fourth-quarter backlog of $38 billion, marking a 3.1% increase year-over-year, alongside a trailing twelve-month book-to-bill ratio of 1.1x. Free cash flow for the quarter reached $212 million, compared to $194 million in the preceding year.

For the entirety of fiscal year 2026, revenue decreased by 6.4% to $11.2 billion, while adjusted diluted EPS saw an increase of 2.5% to $6.51. The corporation declared a quarterly dividend of $0.59 per share, scheduled for payment on June 26, 2026.

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Оригінал статті: uk.investing.com