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Booz Allen Hamilton Reports Surprise Fiscal Fourth-Quarter Earnings Growth

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Booz Allen Hamilton Reports Surprise Fiscal Fourth-Quarter Earnings Growth

Booz Allen Hamilton's (BAH) fiscal fourth-quarter earnings unexpectedly increased year over year, but the technology and management consulting firm reported revenue below market estimates.

The company on Friday posted adjusted earnings of $1.78 a share for the quarter ended March, up from $1.61 the year before, defying the consensus on FactSet for a decline to $1.34. The stock rose 4.8% in the most recent premarket activity.

Revenue came in at $2.78 billion, down from $2.97 billion in the prior-year quarter, missing the Street's view for $2.87 billion. Excluding billable expenses, revenue decreased 6.8% to $1.91 billion.

"In a challenging year, Booz Allen delivered strong profitability while continuing to accelerate our transformation," Chief Executive Horacio Rozanski said in a statement. "We're investing in proven growth areas and building tech to create long-term value for our shareholders."

Defense revenue ticked down to $1.52 billion from $1.53 billion, while civil slipped to $786 million from $989 million last year. Intelligence revenue increased to $499 million from $458 million on a yearly basis.

For fiscal 2027, Booz Allen anticipates adjusted EPS to come in between $6 and $6.35 on a revenue range of $11.2 billion to $11.7 billion. The Street is currently looking for non-GAAP EPS of $6.21 and sales of $11.46 billion. In the previous fiscal year, the company's adjusted EPS improved 2.5% to $6.51, while revenue fell 6.4% to $11.22 billion.

The firm said it's seeing accelerating demand across its portfolio and expects continued growth in the national security business. External factors are projected to drive a decline in the civil business, the company added.

"We enter (fiscal 2027) with momentum and are well-positioned for the year ahead," according to Rozanski.

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