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

Key Points

• Booz Allen Hamilton shares gapped up after the company reported stronger-than-expected quarterly earnings, opening at $69.99 versus the prior close of $65.87 and later trading around $74.70.
• The firm posted earnings of $1.81 per share, beating estimates of $1.49, but revenue came in at $1.97 billion, below analyst expectations of $2.81 billion and down 4.2% year over year.
• The company reaffirmed a FY 2027 guidance range of $6.00 to $6.35 EPS and continues to pay a quarterly dividend of $0.59 per share, equal to a 3.1% annualized yield.

Shares of Booz Allen Hamilton Holding Corporation (NYSE:BAH - Get Free Report) 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 traded.

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

Booz Allen Hamilton Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Wednesday, June 10th were given a dividend of $0.59 per share. The ex-dividend date of this dividend was Wednesday, June 10th. This represents a $2.36 annualized dividend and a yield of 3.1%. Booz Allen Hamilton's dividend payout ratio is currently 34.25%.

Wall Street Analysts Forecast Growth

BAH has been the topic of several recent analyst reports. Truist Financial decreased their target price on shares of Booz Allen Hamilton from $85.00 to $70.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Wells Fargo & Company initiated coverage on shares of Booz Allen Hamilton in a research report on Wednesday, April 1st. They set an "equal weight" rating and a $85.00 price target on the stock. Citigroup decreased their price objective on shares of Booz Allen Hamilton from $88.00 to $69.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 1st. Weiss Ratings downgraded shares of Booz Allen Hamilton from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, July 8th. Finally, Stifel Nicolaus set a $110.00 target price on Booz Allen Hamilton and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, Booz Allen Hamilton currently has a consensus rating of "Reduce" and an average target price of $84.46.

Institutional Investors Weigh In On Booz Allen Hamilton

Hedge funds have recently made changes to their positions in the stock. Activest Wealth Management lifted its stake in Booz Allen Hamilton by 141.3% in the 4th quarter. Activest Wealth Management now owns 304 shares of the business services provider's stock valued at $26,000 after purchasing an additional 178 shares during the last quarter. Torren Management LLC acquired a new stake in Booz Allen Hamilton in the fourth quarter valued at approximately $26,000. Rakuten Securities Inc. grew its stake in shares of Booz Allen Hamilton by 414.6% during the second quarter. Rakuten Securities Inc. now owns 247 shares of the business services provider's stock worth $26,000 after buying an additional 199 shares during the last quarter. PenderFund Capital Management Ltd. bought a new stake in shares of Booz Allen Hamilton during the fourth quarter worth $30,000. Finally, Fulcrum Asset Management LLP acquired a new position in shares of Booz Allen Hamilton during the third quarter worth $32,000. 91.82% of the stock is currently owned by institutional investors and hedge funds.

Booz Allen Hamilton Stock Up 14.3%

The company has a market capitalization of $9.02 billion, a price-to-earnings ratio of 10.87, a P/E/G ratio of 3.42 and a beta of 0.36. The company has a debt-to-equity ratio of 3.55, a current ratio of 1.78 and a quick ratio of 1.78. The firm's fifty day moving average price is $70.37 and its 200-day moving average price is $78.32.

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.

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