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

Booz Allen Hamilton Holding Corporation (NYSE:BAH)’s share price gapped up prior to trading 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 EPS for the quarter, beating the consensus estimate of $1.49 by $0.32. Booz Allen Hamilton had a return on equity of 76.07% and a net margin of 7.59%.The business had revenue of $1.97 billion during the quarter, compared to analyst estimates of $2.81 billion. During the same quarter last year, the firm posted $1.48 earnings per share. The company’s revenue for the quarter was down 4.2% on a year-over-year basis. Booz Allen Hamilton has set its FY 2027 guidance at 6.000-6.35 EPS.

Booz Allen Hamilton Announces Dividend

The firm also recently declared 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. This represents a $2.36 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend was Wednesday, June 10th. Booz Allen Hamilton’s dividend payout ratio (DPR) is 34.25%.

Key Stories Impacting Booz Allen Hamilton

Here are the key news stories impacting Booz Allen Hamilton this week:

• Positive Sentiment: Booz Allen beat quarterly profit expectations by a wide margin, which signaled better-than-expected profitability and helped lift sentiment. Booz Allen Hamilton (BAH) Q1 Earnings Top Estimates
• Positive Sentiment: The company maintained FY2027 guidance, with EPS outlook of $6.00 to $6.35 and revenue guidance of $11.2 billion to $11.7 billion, easing fears that the slowdown would worsen. Booz Allen Hamilton Announces First Quarter Fiscal Year 2027 Results
• Neutral Sentiment: Revenue came in below expectations at $1.97 billion versus the much higher analyst forecast cited in the reports, and sales were down year over year, which remains a concern for growth investors. Booz Allen Hamilton earnings report
• Neutral Sentiment: Management said it is seeing accelerating demand in parts of the business, but the top-line weakness means investors are still weighing stronger margins against slower sales. Booz Allen Profit, Revenue Falls Despite Accelerating Demand

Wall Street Analyst Weigh In

BAH has been the topic of a number of recent research reports. The Goldman Sachs Group cut their price objective on shares of Booz Allen Hamilton from $74.00 to $65.00 and set a “sell” rating on the stock in a report on Tuesday, July 14th. Bank of America reduced their price objective on Booz Allen Hamilton from $90.00 to $75.00 and set an “underperform” rating for the company in a research report on Monday, July 20th. Wells Fargo & Company began coverage on Booz Allen Hamilton in a research note on Wednesday, April 1st. They set an “equal weight” rating and a $85.00 price objective for the company. Weiss Ratings downgraded Booz Allen Hamilton from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, July 8th. Finally, Stifel Nicolaus set a $110.00 price target on Booz Allen Hamilton and gave the company a “buy” rating in a report on Tuesday, May 26th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $84.46.

Institutional Investors Weigh In On Booz Allen Hamilton

A number of large investors have recently added to or reduced their stakes in the stock. Johnson Financial Group Inc. boosted its stake in shares of Booz Allen Hamilton by 26.1% in the 3rd quarter. Johnson Financial Group Inc. now owns 600 shares of the business services provider’s stock worth $60,000 after buying an additional 124 shares during the last quarter. Campbell & CO Investment Adviser LLC lifted its holdings in Booz Allen Hamilton by 2.8% in the fourth quarter. Campbell & CO Investment Adviser LLC now owns 4,916 shares of the business services provider’s stock valued at $415,000 after acquiring an additional 133 shares during the period. Activest Wealth Management boosted its position in Booz Allen Hamilton by 141.3% in the fourth quarter. Activest Wealth Management now owns 304 shares of the business services provider’s stock worth $26,000 after purchasing an additional 178 shares during the last quarter. Arkadios Wealth Advisors boosted its position in Booz Allen Hamilton by 7.3% in the fourth quarter. Arkadios Wealth Advisors now owns 2,646 shares of the business services provider’s stock worth $223,000 after purchasing an additional 179 shares during the last quarter. Finally, Cresset Asset Management LLC boosted its position in Booz Allen Hamilton by 6.2% in the second quarter. Cresset Asset Management LLC now owns 3,257 shares of the business services provider’s stock worth $339,000 after purchasing an additional 191 shares during the last quarter. Institutional investors own 91.82% of the company’s stock.

Booz Allen Hamilton Trading Up 10.4%

The stock has a 50 day simple moving average of $70.37 and a 200-day simple moving average of $78.28. The firm has a market capitalization of $8.71 billion, a P/E ratio of 10.56, a P/E/G ratio of 3.41 and a beta of 0.36. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of 3.55.

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.