Booz Allen's Q4 Earnings Surpass Estimates, Increase Y/Y
Booz Allen Hamilton Holding Corp. BAH reported mixed fourth-quarter fiscal 2025 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
Quarterly adjusted earnings per share of $1.61 surpassed the Zacks Consensus Estimate by 1.3% and increased 21.1% from the year-ago fiscal quarter's actual. The company reported revenues of $2.3 billion, which missed the consensus estimate by 1.5% and increased 7.3% on a year-over-year basis. Revenues, excluding billable expenses, were $2.05 billion, up 6.2% on a year-over-year basis.
Booz Allen Hamilton Holding Corporation price-consensus-eps-surprise-chart | Booz Allen Hamilton Holding Corporation Quote
The earnings beat failed to impress the market, as there has not been any price change since the earnings release.
The total backlog increased 14.8% from the year-ago quarter to $37 billion, missing our estimate of $38.7 billion. The funded and unfunded backlogs amounted to $4.4 billion and $8.8 billion, respectively. Funded backlog increased 5.6%, missing our anticipation of $4.9 billion. The unfunded backlog rose 4.9%, missing our estimate of $9.8 billion.
Priced options rose 21.9% to $23.8 billion, marginally missing our expectation of $23.9 billion. The book-to-bill ratio was 1.39 compared with 1.22 in the year-ago quarter. The headcount of 35,800 improved 4.4% on a year-over-year basis.
Adjusted EBITDA amounted to $1.32 billion, an increase of 11.9% from the year-ago quarter, and was in line with our estimate. The adjusted EBITDA margin on revenues of 11% remained flat on a year-over-year basis.
Booz Allen exited the quarter with cash and cash equivalents of $885 million compared with $554 million in the March-end quarter of 2024. Long-term debt (net of current portion) was $3.9 billion, up 16.9% on a year-over-year basis.
The company generated $218 million in net cash from operating activities. Capital expenditure was $1.2 billion. The free cash flow was $911 million.
For fiscal 2026, BAH expects revenues to be in the range of $12-$12.5 billion. The revenue growth is anticipated to be in the range of 0-4%. It expects an adjusted EPS of $700-$800 million. Capital expenditures are expected to be approximately $110 million.
Booz Allen currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company's earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI's adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company's earnings topped the Zacks Consensus Estimate, while revenues missed the mark.
IPG's adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Affirm Stock Moves Above 200-Day SMA: Time to Buy the Bounce?
Shares of Affirm Holdings, Inc. AFRM are gaining momentum, buoyed by product innovation, a growing customer base, and strategic moves in the buy now, pay later (BNPL) space. Recently, AFRM has broken above its 200-day simple moving average (SMA), a key technical level often seen as the start of a potential uptrend. The stock closed at $54.33 yesterday, still trading at a 34.2% discount from its 52-week high of $82.53, suggesting ample room for upside. The 200-day SMA is a widely followed technical indicator used to assess long-term trends. When a stock moves above this line, it often signals improving sentiment and potential support for future gains. Image Source: Zacks Investment Research Over the past month, AFRM has risen 6.5%, slightly ahead of the S&P 500's 6.3% gain but trailing the industry's 13.7% climb. During this time, major BNPL service provider PayPal Holdings, Inc. PYPL grew 7% while Block, Inc. XYZ jumped 35%. Image Source: Zacks Investment Research Repeat customer growth is emerging as a major strength for Affirm. In the fiscal third quarter, 94% of transactions came from returning users, a strong indicator of brand loyalty and the potential for more stable, recurring revenues. Affirm is also broadening its reach by moving into everyday consumer categories such as home goods and lifestyle. A recent partnership with World Market highlights this strategic shift toward more consistent, day-to-day usage. On the global front, Affirm is expanding beyond North America. After entering the U.K. market, the company now plans to roll out services across Western Europe, starting with France, Germany and the Netherlands, through a partnership with Shopify. Backed by a network of over 358,000 merchant partners, this international expansion could unlock significant new growth opportunities. Affirm is relatively undervalued compared to peers. Its 4.51X forward 12-month sales is lower than the industry average of 5.56X. Meanwhile, PayPal and Block are currently trading at 2.10X and 1.51X, respectively. Image Source: Zacks Investment Research The company's model benefits both merchants and consumers. By reducing cart abandonment and offering flexible, transparent payment options — including 0% APR monthly installments — Affirm drives sales for partners while building a strong user base. Notably, 0% APR plans rose 44% year over year in the fiscal third quarter and accounted for 13% of GMV. In addition to its BNPL offerings, Affirm is investing in complementary financial products, including debit solutions and business-to-business tools. These innovations can drive more frequent usage, deepen customer relationships and strengthen its merchant ecosystem. The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 100.6% year-over-year improvement to a penny per share, while fiscal 2026 earnings are expected to soar to 70 cents. Revenue projections are also strong, with fiscal 2025 and 2026 expected to grow 37% and 23.7%, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The company anticipates fiscal fourth quarter revenues between $815-$845 million and Gross Merchandise Value between $9.4-$9.7 billion. It has delivered solid financial results lately, beating earnings estimates in each of the trailing four quarters, the average surprise being 102.2%. Affirm Holdings, Inc. price-eps-surprise | Affirm Holdings, Inc. Quote As of March 31, 2025, Affirm had $1.9 billion in funding debt. Although it is a growing company, its long-term debt-to-capital ratio stands at 71.8%, far above the industry average of 13.3%, which remains a concern. It needs to demonstrate sustained profitability over the coming quarters to assure investors about its capacity to service debt obligations. Operating expenses have been rising steadily, up 76.6% in fiscal 2022, 25.9% in fiscal 2023, and 5.4% in fiscal 2024. In the fiscal third quarter alone, they increased 7.4%. As Affirm continues to invest in growth and innovation, cost management will be critical to protecting margins. The BNPL space is increasingly crowded. Rivals like PayPal, Klarna and Block, as well as traditional banks and credit card companies, are all expanding their offerings. Walmart's recent decision to switch from Affirm to Klarna illustrates the intensity of the competitive landscape and may signal challenges to its merchant retention efforts. Affirm's recent breakout above its 200-day SMA is a promising technical signal, backed by improving fundamentals, loyal customer behavior, and expansion into new markets and product categories. The company continues to innovate and grow its revenue base while trading at a relative valuation discount. However, high debt levels, rising expenses and intensifying competition in the BNPL space present notable risks. Given the mix of strong growth drivers and ongoing risks, Affirm currently carries a Zacks Rank #3 (Hold), suggesting investors may want to wait for clearer signs of sustainable profitability before making moves. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Are Aerospace Stocks Lagging Safran (SAFRY) This Year?
The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Safran SA (SAFRY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question. Safran SA is a member of our Aerospace group, which includes 54 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Safran SA is currently sporting a Zacks Rank of #1 (Strong Buy). Within the past quarter, the Zacks Consensus Estimate for SAFRY's full-year earnings has moved 5.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the latest available data, SAFRY has gained about 39.1% so far this year. In comparison, Aerospace companies have returned an average of 19.1%. As we can see, Safran SA is performing better than its sector in the calendar year. Another Aerospace stock, which has outperformed the sector so far this year, is Triumph Group (TGI). The stock has returned 38.5% year-to-date. Over the past three months, Triumph Group's consensus EPS estimate for the current year has increased 2.3%. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Safran SA belongs to the Aerospace - Defense industry, a group that includes 26 individual companies and currently sits at #51 in the Zacks Industry Rank. On average, stocks in this group have gained 26% this year, meaning that SAFRY is performing better in terms of year-to-date returns. Triumph Group, however, belongs to the Aerospace - Defense Equipment industry. Currently, this 27-stock industry is ranked #32. The industry has moved +2.3% so far this year. Investors interested in the Aerospace sector may want to keep a close eye on Safran SA and Triumph Group as they attempt to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Safran SA (SAFRY) : Free Stock Analysis Report Triumph Group, Inc. (TGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Is Healthcare Services Group (HCSG) Outperforming Other Business Services Stocks This Year?
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Healthcare Services (HCSG) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Healthcare Services is a member of the Business Services sector. This group includes 271 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Healthcare Services is currently sporting a Zacks Rank of #1 (Strong Buy). Within the past quarter, the Zacks Consensus Estimate for HCSG's full-year earnings has moved 13.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Our latest available data shows that HCSG has returned about 22.7% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -0.3% on a year-to-date basis. This means that Healthcare Services is outperforming the sector as a whole this year. Loop Industries, Inc. (LOOP) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 30.8%. In Loop Industries, Inc.'s case, the consensus EPS estimate for the current year increased 2.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Healthcare Services belongs to the Business - Services industry, a group that includes 26 individual companies and currently sits at #32 in the Zacks Industry Rank. On average, this group has gained an average of 18.3% so far this year, meaning that HCSG is performing better in terms of year-to-date returns. On the other hand, Loop Industries, Inc. belongs to the Technology Services industry. This 130-stock industry is currently ranked #51. The industry has moved +7.5% year to date. Investors with an interest in Business Services stocks should continue to track Healthcare Services and Loop Industries, Inc. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Healthcare Services Group, Inc. (HCSG) : Free Stock Analysis Report Loop Industries, Inc. (LOOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
