FMP
May 23, 2025
Booz Allen Hamilton Holding Corporation, listed as NYSE:BAH, is a prominent consulting firm and government contractor based in McLean, Virginia. The company specializes in providing management and technology consulting services to the U.S. government and commercial clients. Booz Allen Hamilton competes with other consulting giants like Accenture and Deloitte in the industry.
On May 23, 2025, Booz Allen Hamilton reported earnings per share (EPS) of $1.61, surpassing the estimated $1.59. This marks a positive trend, as the company has exceeded consensus EPS estimates three times in the past four quarters. Despite this, the company's revenue of $2.97 billion fell short of the estimated $3.16 billion, missing the Zacks Consensus Estimate by 1.50%.
The company's fiscal 2026 outlook has raised concerns among investors. Booz Allen Hamilton projects adjusted EPS between $6.20 and $6.55, with revenue expected to range from $12 billion to $12.5 billion. These figures are below analysts' expectations of $6.92 EPS and $12.82 billion in revenue, leading to a decline in the company's stock during pre-market trading.
CEO Horacio Rozanski attributes the disappointing outlook to the Trump administration's cost-cutting measures, which have impacted contracts with civilian agencies. In response, Booz Allen Hamilton plans to restructure its civil business, implementing cost reductions and layoffs. CFO Matt Calderone announced a 7% workforce reduction in the first quarter, primarily affecting the civil business.
Despite these challenges, Booz Allen Hamilton anticipates growth in its defense and intelligence segments. The company's financial metrics, such as a P/E ratio of 16.4 and a price-to-sales ratio of 1.20, reflect the market's valuation of its earnings and revenue. Additionally, the company's debt-to-equity ratio of 2.97 highlights its financial leverage, while a current ratio of 1.57 indicates its ability to cover short-term liabilities.
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