Booz Allen Hamilton (NYSE:BAH) is a leading consulting firm that primarily serves the U.S. government. The company is renowned for its extensive consulting services, with long-term government contracts making up 98% of its revenue. This focus ensures revenue stability, as highlighted by its consistent financial performance. Booz Allen operates in the competitive Zacks Consulting Services industry, where it has demonstrated strong growth.
On January 31, 2025, Booz Allen Hamilton reported earnings per share (EPS) of $1.45, slightly below the estimated $1.48. Despite this, the company has a history of exceeding expectations, as seen in its fiscal 2025 third quarter. During this period, Booz Allen reported an adjusted EPS of $1.55, surpassing the forecasted $1.52, and marking a 4.73% earnings surprise. This performance reflects the company's ability to deliver strong financial results.
Booz Allen Hamilton generated revenue of approximately $2.92 billion, which fell short of the estimated $3.09 billion. However, this figure still represents a 13.5% increase compared to the previous year. The company has consistently surpassed consensus revenue estimates in each of the last four quarters, demonstrating its capacity for growth. In the quarter ending December 2024, Booz Allen's revenue was 2.71% above the Zacks Consensus Estimate.
Despite the positive quarterly performance, Booz Allen Hamilton's stock price experienced a decline of 0.55%. This drop occurred as the company's future guidance fell short of the elevated expectations set by analysts. The market's reaction underscores the importance of meeting or exceeding analyst expectations for future performance, even when current results are strong.
Booz Allen Hamilton's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 19.44, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 1.42, while the enterprise value to sales ratio is around 1.40. These figures suggest how investors value the company's sales and overall valuation. Additionally, Booz Allen's debt-to-equity ratio of approximately 0.25 indicates a relatively low level of debt compared to equity, reflecting financial stability.
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