Booz Allen Hamilton Stock Slips As Q4 Bottom-Line, FY23 EPS Outlook Miss Estimates

  • Booz Allen Hamilton Holding Corp BAH reported fourth-quarter FY22 sales growth of 13.1% year-on-year to $2.24 billion, beating the consensus of $2.22 billion. Revenue, excluding billable expenses, grew 14.3%.
  • Adjusted EPS of $0.86, down from $0.89 in 4Q21, missed the consensus of $0.87.
  • Adjusted operating income increased by 2.7% Y/Y to $176.1 million, and the margin contracted by 80 bps to 7.9%.
  • Adjusted EBITDA of $205 million rose 6.3% Y/Y, and the margin contracted by 60 bps to 9.2%.
  • Booz Allen Hamilton generated cash from operating activities of $736.53 million in FY22, compared to $718.68 million a year ago. Free cash flow was $656.56 million.
  • The total backlog increased by 21.7% Y/Y to $29.25 billion, and the book-to-bill ratio was 1.36x.
  • As of March 31, 2022, the total headcount was 1,590 higher than last year, reflecting an increase of 5.73% and 136 lower than the end of the prior quarter.
  • Dividend: The company declared a regular quarterly dividend of $0.43 per share, which is payable on June 30, 2022, to stockholders of record on June 15, 2022.
  • The company held $695.91 million in cash and equivalents as of March 31, 2022.
  • FY23 Outlook: Booz Allen Hamilton expects sales growth of 5%- 9%. It expects an adjusted EPS of $4.15 to $4.45 vs. the consensus of $4.56.
  • It sees Adjusted EBITDA of $950 million - $1 billion and the margin in mid-to-high 10%.
  • The company expects net cash provided by operating activities of $850 million - $950 million.
  • Price Action: BAH shares traded lower by 4.24% at $77.41 on the last check Friday.
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