Booz Allen Hamilton Stock Falls On FY22 Sales Growth Outlook Cut

Booz Allen Hamilton Holding Corp BAH reported third-quarter FY22 sales growth of 6.6% year-on-year, to $2.03 billion, missing the analyst consensus of $2.13 billion. Revenue, excluding billable expenses, grew 6.2%.
Adjusted EPS of $1.02 down from $1.04 in 3Q21, beating the consensus of $0.99.
The operating income declined 3.8% Y/Y to $177.21 million, and the margin contracted by 95 bps to 8.7%.
Adjusted EBITDA of $222.13 million rose 8.1% Y/Y, and the margin expanded 15 basis points to 10.9%.
The company increased the regular quarterly dividend to $0.43 from $0.37 per share, payable on March 2, 2022, to stockholders of record on February 11, 2022.
Total backlog increased by 19.2% Y/Y to $27.8 billion, and the quarterly book-to-bill ratio was 0.39x.
Booz Allen Hamilton generated cash from operating activities year-to-date of $481.15 million, compared to $798.96 million a year ago. Free cash flow was $429.54 million.
The company held $642.71 million in cash and equivalents as of December 31, 2021.
FY22 Outlook: Booz Allen Hamilton reduced its FY22 sales growth outlook to 5.7%- 7.2% from the prior view of 7% - 10%.
It reaffirmed the adjusted EPS outlook of $4.10 - $4.30 versus the consensus of $4.25.
The company expects net cash provided by operating activities of $700 million - $750 million, down from the prior expectation of $800 million - $850 million.
Price Action: BAH shares traded lower by 8.09% at $75.39 on the last check Friday.

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