Booz Allen Hamilton (NYSE:BAH) Shares Gap Up After Strong Earnings

Booz Allen Hamilton Holding Corporation (NYSE:BAH) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $65.87, but opened at $69.99. Booz Allen Hamilton shares last traded at $74.7040, with a volume of 775,600 shares trading hands.

The business services provider reported $1.81 EPS for the quarter, beating the consensus estimate of $1.49 by $0.32. Booz Allen Hamilton had a net margin of 7.59% and a return on equity of 76.07%. The firm had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $2.81 billion. During the same period last year, the firm earned $1.48 EPS. The company’s revenue was down 4.2% on a year-over-year basis. Booz Allen Hamilton has set its FY 2027 guidance at 6.000-6.35 EPS.

Booz Allen Hamilton Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Wednesday, June 10th were issued a dividend of $0.59 per share. The ex-dividend date of this dividend was Wednesday, June 10th. This represents a $2.36 dividend on an annualized basis and a yield of 3.2%. Booz Allen Hamilton’s dividend payout ratio (DPR) is currently 34.25%.

Key Headlines Impacting Booz Allen Hamilton

Here are the key news stories impacting Booz Allen Hamilton this week:

• Positive Sentiment: Booz Allen beat quarterly profit expectations by a wide margin, which signaled better-than-expected profitability and helped lift sentiment. Booz Allen Hamilton (BAH) Q1 Earnings Top Estimates
• Positive Sentiment: The company maintained FY2027 guidance, with EPS outlook of $6.00 to $6.35 and revenue guidance of $11.2 billion to $11.7 billion, easing fears that the slowdown would worsen. Booz Allen Hamilton Announces First Quarter Fiscal Year 2027 Results
• Neutral Sentiment: Revenue came in below expectations at $1.97 billion versus the much higher analyst forecast cited in the reports, and sales were down year over year, which remains a concern for growth investors. Booz Allen Hamilton earnings report
• Neutral Sentiment: Management said it is seeing accelerating demand in parts of the business, but the top-line weakness means investors are still weighing stronger margins against slower sales. Booz Allen Profit, Revenue Falls Despite Accelerating Demand

Analyst Upgrades and Downgrades

BAH has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. dropped their price objective on Booz Allen Hamilton from $97.00 to $85.00 and set an “underweight” rating for the company in a research note on Tuesday, May 26th. UBS Group reissued a “neutral” rating and set a $83.00 target price on shares of Booz Allen Hamilton in a research note on Tuesday, May 26th. Citigroup lowered their price target on Booz Allen Hamilton from $88.00 to $69.00 and set a “neutral” rating on the stock in a report on Wednesday, July 1st. Cantor Fitzgerald dropped their price target on Booz Allen Hamilton from $160.00 to $140.00 and set an “overweight” rating for the company in a research note on Thursday. Finally, Truist Financial cut their price objective on shares of Booz Allen Hamilton from $85.00 to $70.00 and set a “hold” rating for the company in a report on Friday, July 10th. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, Booz Allen Hamilton has a consensus rating of “Reduce” and an average price target of $84.46.

Hedge Funds Weigh In On Booz Allen Hamilton

Several institutional investors have recently added to or reduced their stakes in BAH. Primecap Management Co. CA raised its holdings in shares of Booz Allen Hamilton by 135.2% during the 4th quarter. Primecap Management Co. CA now owns 4,666,298 shares of the business services provider’s stock worth $393,649,000 after acquiring an additional 2,682,460 shares in the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in shares of Booz Allen Hamilton by 38.4% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 6,528,226 shares of the business services provider’s stock valued at $550,722,000 after purchasing an additional 1,811,906 shares in the last quarter. Norges Bank bought a new stake in Booz Allen Hamilton in the fourth quarter worth $143,749,000. State Street Corp increased its position in Booz Allen Hamilton by 53.2% in the fourth quarter. State Street Corp now owns 4,402,897 shares of the business services provider’s stock worth $371,428,000 after purchasing an additional 1,528,739 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in Booz Allen Hamilton by 36.0% during the fourth quarter. First Trust Advisors LP now owns 4,856,528 shares of the business services provider’s stock valued at $409,697,000 after purchasing an additional 1,285,475 shares in the last quarter. Hedge funds and other institutional investors own 91.82% of the company’s stock.

Booz Allen Hamilton Trading Up 10.4%

The company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 3.55. The stock’s 50 day moving average is $70.37 and its 200-day moving average is $78.28. The company has a market cap of $8.71 billion, a PE ratio of 11.44, a P/E/G ratio of 3.76 and a beta of 0.36.

About Booz Allen Hamilton

Booz Allen Hamilton Holding Corporation is a publicly traded management and technology consulting firm headquartered in McLean, Virginia. The company provides a wide range of professional services and solutions in strategy, analytics, digital transformation, engineering and cyber security. Its expertise spans from supporting federal civilian agencies to defense, intelligence and homeland security organizations, as well as select commercial industries.

Key offerings include data analytics and artificial intelligence applications, software development and modernization, systems integration, and cyber risk management.