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Booz Allen Hamilton Reports Strong Fiscal Q3 Results

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4.9

Andrew R. Michaud

• January 26, 2024

Booz Allen Hamilton Holding, a high-tech defense contractor based in McLean, Virginia, has announced impressive financial results for the fiscal third quarter. The company's net income more than quadrupled, driven by robust demand for its consulting services from the Department of Defense and other clients.

Stellar Financial Performance

Booz Allen Hamilton reported a significant increase in earnings for the quarter ended in December. Net income rose to $145.6 million, or $1.11 per share, compared to $31 million, or 23 cents per share, in the same period last year. Adjusted earnings per share came in at $1.41, surpassing the mean analyst estimate of $1.14 per share.

Moreover, the company achieved substantial revenue growth during the third quarter. Revenue reached $2.57 billion, representing a notable 12% increase and surpassing the average analyst target of $2.54 billion.

Fueling Continued Momentum

President and Chief Executive Horacio Rozanski attributed the positive results to strong demand and continuous growth in headcount. Booz Allen Hamilton increased its total headcount by 2,700 people, or 8.6%, compared to the end of the fiscal third quarter the previous year.

Revised Outlook for Fiscal Year

Considering the ongoing success, Booz Allen Hamilton has revised its projections for the fiscal year ending in March. The adjusted earnings forecast now ranges between $5.25 per share and $5.40 per share, up from the previous estimate of $4.95 per share to $5.10 per share.

Furthermore, the defense contractor raised its revenue growth projection to a range between 14% and 15%, compared to the previous estimate of growth between 11% and 14%. This higher growth expectation, based on projected fiscal 2023 revenue of $9.2 billion, translates to a revenue range between $10.49 billion and $10.58 billion.

Booz Allen Hamilton also increased its projection for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to a range between $1.155 billion and $1.175 billion. Previously, the targeted range was between $1.115 billion and $1.145 billion. The company's expectation for EBITDA margin is approximately 11%, and it anticipates net cash provided by operating activities to fall between $200 million and $275 million.

Booz Allen Hamilton's exceptional performance in the fiscal third quarter underscores its position as a leading player in the high-tech defense consulting industry.