Booz Allen Hamilton (BAH) Reports Next Week: Wall Street Expects Earnings Growth
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 25. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This defense contractor is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of +5.1%.
Revenues are expected to be $2.94 billion, down 0.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Booz Allen?
For Booz Allen, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.82%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Booz Allen will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Booz Allen would post earnings of $1.59 per share when it actually produced earnings of $1.61, delivering a surprise of +1.26%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Booz Allen doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Equifax (EFX), another stock in the Zacks Consulting Services industry, is expected to report earnings per share of $1.92 for the quarter ended June 2025. This estimate points to a year-over-year change of +5.5%. Revenues for the quarter are expected to be $1.51 billion, up 5.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Equifax has remained unchanged. Nevertheless, the company now has an Earnings ESP of +1.46%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Equifax will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Equifax, Inc. (EFX) : 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
40 minutes ago
- Yahoo
Is Most-Watched Stock JD.com, Inc. (JD) Worth Betting on Now?
Inc. (JD) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this company have returned -4.9%, compared to the Zacks S&P 500 composite's +2.5% change. During this period, the Zacks Internet - Commerce industry, which falls in, has gained 2.3%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. is expected to post earnings of $0.40 per share for the current quarter, representing a year-over-year change of -67.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. For the current fiscal year, the consensus earnings estimate of $2.49 points to a change of -41.6% from the prior year. Over the last 30 days, this estimate has changed +0.3%. For the next fiscal year, the consensus earnings estimate of $3.61 indicates a change of +45.2% from what is expected to report a year ago. Over the past month, the estimate has changed +0.3%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of the consensus sales estimate of $40.08 billion for the current quarter points to a year-over-year change of +8%. The $183.33 billion and $192.78 billion estimates for the current and next fiscal years indicate changes of +14% and +5.2%, respectively. Last Reported Results and Surprise History reported revenues of $49.79 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $0.69 for the same period compares with $1.29 a year ago. Compared to the Zacks Consensus Estimate of $46.93 billion, the reported revenues represent a surprise of +6.1%. The EPS surprise was +38%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term. 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 Inc. (JD) : 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
an hour ago
- Yahoo
Zacks.com featured highlights American Axle & Manufacturing, Brookdale Senior Living, Adient, Asbury Automotive and AutoNation
For Immediate Release Chicago, IL – August 19, 2025 – The stocks in this week's article are American Axle & Manufacturing AXL, Brookdale Senior Living BKD, Adient ADNT, Asbury Automotive ABG and AutoNation U.S. stock market is likely to continue experiencing volatility, driven by ongoing uncertainty over trade policies, economic challenges and shifting investor sentiment. Even though the 90-day extension to the pause in higher tariffs against China serves as a breather, the lack of clarity on the tariff front means that volatility is unlikely to go away soon. This climate of uncertainty poses a significant challenge for investors seeking the right stocks to generate solid returns. A practical approach is to consider broker recommendations, as brokers are regarded as experts with in-depth knowledge of market intricacies. By taking this approach, broker-backed stocks such as American Axle & Manufacturing, Brookdale Senior Living, Adient, Asbury Automotive and AutoNation emerge as attractive options to consider for promising returns. We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company's top line, making the strategy a well-rounded one. Here are five of the 10 stocks that made it through the screen: American Axle & Manufacturing: Its considerable strides and collaborations in the electric drive space and efforts to optimize its portfolio bode well for top- and bottom-line growth. Frequent business wins augur well for American Axle's prospects. AXL recently won several contracts, underscoring its strength in both electric and Internal Combustion Engine markets. AXL surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters by a massive average of 584.1%. The stock carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Brookdale Senior Living: A steady increase in the weighted average occupancy rate suggests rising patient volumes, which bodes well for healthcare facility operators like Brookdale, whose primary revenue source depends on the patient base. Elevated occupancy levels are likely to drive higher resident fee revenues, which represent the most significant portion of Brookdale's total revenues. An uptick in resident fees is also expected to fuel growth in adjusted EBITDA. The Zacks Consensus Estimate for BKD's 2025 earnings has been revised 7.8% upward from 2024's actuals. BKD shares are up 37.7% over the past six months. BKD currently carries a Zacks Rank #3. Adient: It has been gaining customers with its broad range of products. A diverse customer base and international presence have helped the company create a strong market position. Launch execution continues to be an area of focus for Adient and a key building block to win new business. Adient currently carries a Zacks Rank #3. ADNT beat the Zacks Consensus Estimate for earnings in three of the past four quarters, the average beat being 30.3%. ADNT reported lower-than-expected earnings in one of the past four quarters. Asbury's diversified product mix and multiple streams of income improve its risk profile and position it for top-line growth. Its e-commerce platform— Clicklane— is driving growth. Strategic buyouts are helping the auto retailer increase its market share. Asbury's rollout of Tekion's Automotive Retail Cloud is emerging as a strategic tailwind. Asbury currently carries a Zacks Rank #3. ABG beat the Zacks Consensus Estimate for earnings in two of the past four quarters, the average beat being 5.9%. The company reported lower-than-expected earnings in the other two quarters. AutoNation is one of the largest automotive retailers in the nation, backed by a wide geographical footprint and a growing dealer network. Its ongoing store expansion strategy is helping AutoNation reach a broader customer base across key markets. Strategic acquisitions continue to fuel growth, including the recent purchase of two dealerships in the Greater Denver area. AutoNation is also leaning into digital transformation with its AutoNation Express platform, which streamlines online vehicle buying and selling. AN surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters and missed the mark once. The average beat was 7.5%. AN currently carries a Zacks Rank #3. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors, and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks' portfolios and strategies are available at: Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> For the rest of this Screen of the Week article please visit at: Follow us on Twitter: Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Phone: 312-265-9268 Email: pr@ Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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 AutoNation, Inc. (AN) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report Brookdale Senior Living Inc. (BKD) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Adient (ADNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
an hour ago
- Yahoo
Home Depot Q2 Earnings Miss Estimates, Comparable Sales Rise Y/Y
The Home Depot Inc. HD has reported second-quarter fiscal 2025 results, wherein both the sales and earnings missed the Zacks Consensus Estimate. However, both metrics improved year over year. Also, comparable sales increased year over is confident about its initiatives to strengthen the business. Management highlighted continued momentum in smaller home-improvement projects and reiterated its focus on building the best interconnected experience for customers and growing share, while reaffirming fiscal 2025 guidance. The Home Depot, Inc. Price, Consensus and EPS Surprise The Home Depot, Inc. price-consensus-eps-surprise-chart | The Home Depot, Inc. Quote Detailed Picture of HD's Q2 Results Home Depot's adjusted earnings of $4.68 per share increased slightly by 0.2% from $4.67 in the year-ago quarter. However, the bottom line missed the Zacks Consensus Estimate of $4.71 per sales increased 4.9% to $45.3 billion from $43.2 billion in the year-ago quarter. However, sales lagged the Zacks Consensus Estimate of $45.5 Depot's comparable sales increased 1% in the reported quarter. The company's comparable sales in the United States improved 1.4% in the fiscal second quarter. However, unfavorable foreign exchange rates reduced total company comparable sales by about 40 basis points in the quarter. Customer transactions were 446.8 million, down 0.9% year over year. Average ticket improved 1.2% year over year in the quarter under review. HD's Costs & Margin Details In dollar terms, gross profit rose 4.9% year over year to $15.1 billion in the fiscal second quarter. The gross margin was approximately 33.4%, roughly flat year over year. Our model predicted a 10-bps year-over-year decline in the gross margin to 33.3% for the fiscal second expenses of $7.8 billion increased 8.7% from $7.1 billion in the year-ago quarter; as a percentage of sales, SG&A was about 17.1%, up roughly 60 bps year over income was $6.6 billion, up 0.3% year over year, while the operating margin of about 14.5% contracted by roughly 65 bps year over model predicted the SG&A expense rate to increase by 50 bps year over year to 17%. Consequently, we anticipated the operating income to increase 1.1% year over year and the operating margin to contract 60 bps to 14.5% for the fiscal second quarter. HD Stock's Past 3-Month Performance Image Source: Zacks Investment Research HD's Other Financial Updates Home Depot ended second-quarter fiscal 2025 with cash and cash equivalents of $2.8 billion, long-term debt (excluding current installments) of $45.9 billion and stockholders' equity of $10.7 billion. For the first six months of fiscal 2025, the company generated $9.0 billion of net cash from operating activities. What Does HD Plan for FY25? Management reiterated its sales and earnings per share view for fiscal 2025. Home Depot anticipates sales to increase 2.8% year over year. The company expects comparable sales to increase 1% for the 52 estimates the gross margin for fiscal 2025 to be 33.4%, with an operating margin of 13%. It expects an adjusted operating margin of 13.4%. HD plans to open 13 stores for fiscal Depot anticipates earnings per share to decline 3% year over year for fiscal 2025. It expects adjusted earnings per share to fall 2% year over year. The company anticipates capital expenditures to be 2.5% of total Zacks Rank #3 (Hold) company's shares have gained 4.7% in the past three months compared with the industry's 6.5% growth. Stocks to Consider Some better-ranked stocks are Somnigroup International Inc. SGI, Williams-Sonoma, Inc. WSM and Torrid Holdings Inc. is a bedding company that designs, manufactures, distributes and retails sleep solutions. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for Somnigroup's current financial-year sales and earnings indicates growth of 50.7% and a decline of 0.4%, respectively, from the previous year's figures. SGI has a trailing four-quarter average earnings surprise of 3.7%.Williams-Sonoma is a multi-channel specialty retailer of premium-quality home products. It currently carries a Zacks Rank #2. WSM has a trailing four-quarter earnings surprise of 8.8%, on Zacks Consensus Estimate for Williams-Sonoma's current fiscal-year sales and earnings indicates growth of 0.1% and a decline of 3%, respectively, from the year-ago Holdings is a direct-to-consumer brand of apparel, intimates and accessories. It currently carries a Zacks Rank of Zacks Consensus Estimate for Torrid Holdings' current fiscal-year sales and earnings indicates a decline of 5.6% and 6.7%, respectively, from the year-ago numbers. CURV has a negative trailing four-quarter earnings surprise of 10.5%, on average. 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 The Home Depot, Inc. (HD) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Somnigroup International Inc. (SGI) : Free Stock Analysis Report Torrid Holdings Inc. (CURV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
