Government And Military Contractor Booz Allen Clocks Strong Q2 Performance, Backlog Expands to $41.3B

Booz Allen Hamilton Holding BAH reported fiscal second-quarter adjusted EPS of $1.81, topping the analyst consensus estimate of $1.49. The stock price gained after the print.

Quarterly sales of $3.15 billion, up 18% year-on-year, beat the street view of $2.97 billion. The backlog grew by 17.7%, reaching $41.3 billion, while the quarterly book-to-bill ratio stood at 2.61x.

Also Read: SAIC’s $130B Pipeline Boosts Outlook, Booz Allen Faces Valuation Challenge, Says JP Morgan

During the quarter, the company achieved double-digit organic revenue growth, including double-digit organic revenue growth in both the federal defense and civil markets, increased quarterly backlog, and revealed expansion in headcount.

Booz Allen recorded a quarterly operating income of $548.61 million, compared with $266.99 million a year ago.

As of September 30, the client staff headcount had risen by around 2,500 compared to the previous year, marking an 8.1% increase and approximately 700 higher than the end of the prior quarter.

Booz Allen exited the quarter with cash and equivalents worth $558.72 million. Long-term debt, net of the current portion, totals $3.31 billion.

The company announced a quarterly dividend of $0.51 per share.

Outlook: Booz Allen raised its fiscal 2025 outlook and expects revenue growth of 11%–13% or $11.84 billion—$12.85 billion (prior 8.0%–11.0%) year over year versus the estimated $11.84 billion.

The company expects adjusted EPS of $6.10–$6.30 (prior $5.80–$6.05) versus the $6.00 estimate.

Booz Allen Hamilton stock gained over 39% in the last 12 months.

Price Action: BAH stock is up 12.30% to $187.01 premarket at last check Friday.

Also Read:

• Harley-Davidson Q3 Earnings: Sales Drop 26%, High Interest Rates Hit Motorcycle Demand And Margins, Lowers 2024 Outlook