Booz Allen Hamilton Q3 Earnings Exceed Expectations

  • Booz Allen Hamilton Holding Corp BAH reported third-quarter FY23 sales growth of 12.1% year-on-year to $2.28 billion, beating the consensus of $2.22 billion.
  • Operating costs and expenses rose 19.7% Y/Y to $2.2 billion.
  • Operating margin was 2.6%, and operating income for the quarter fell 66.9% to $58.6 million.
  • The company held $370.9 million in cash and equivalents as of Dec. 31, 2022.
  • Adjusted EBITDA of $244.1 million rose 9.8% Y/Y, with the margin of 10.7%.
  • Q3 backlog increased 8.2% to $30 billion. Cash provided by operating activities for nine months totaled $365.7 million, and the free cash flow was $314.3 million.
  • Adjusted EPS of $1.07 beat the analyst consensus of $1.05.
  • The company's regular quarterly dividend of $0.47 per share is payable on Mar. 1, 2023, to stockholders of record on Feb. 10, 2023.
  • Outlook: Booz Allen narrows FY23 adjusted EPS guidance from $4.25 - $4.50 to $4.35 - $4.50, against the estimate of $4.47.
  • It raised the FY23 revenue outlook from 8% - 10% to 9.5% - 10.5%.
  • Price Action: BAH shares are trading higher by 1.71% at $98.84 in premarket on the last check Friday.

Posted In: EarningsNewsGuidanceGeneralBriefs