Latest news with #BoozAllen
Yahoo
5 days ago
- Business
- Yahoo
Why Booz Allen Hamilton Stock Fell Today
Following last week's disappointing earnings outlook, Wall Street analysts downgraded shares today. The stock is beginning to look quite cheap on a long-term basis. 10 stocks we like better than Booz Allen Hamilton › Shares of government technology consultancy Booz Allen Hamilton (NYSE: BAH) fell on Wednesday, down as much as 4.9% before recovering modestly to a 4% decline as of 1:37 p.m. ET. Booz Allen sold off by a double-digit number last Friday following its fiscal-fourth-quarter earnings release, before recovering a bit yesterday. But today, sell-side analysts downgraded their ratings and price targets, and these delayed negative takes from last week's earnings appear to be sending shares down again today. Today, analysts at Goldman Sachs downgraded Booz Allen Hamilton shares from neutral to sell, while lowering the firm's price target on shares from $108 to $94. As of this writing, Booz Allen's stock price is $104.75. The Goldman analysts downgraded shares because they now see medium-term earnings growth as "flat," given the new outlook from management on last Friday's conference call with analysts. On that call, management noted that it sees revenue growth between 0% and 4% in fiscal 2026 (ending in March 2026), down from 12.4% last year, with an adjusted (non-GAAP) earnings range of $6.20 to $6.55. That compares with $6.35 earnings last year. If by "the medium term" Goldman means the one-year outlook, it's right on that front. And if that remains the growth rate for Booz Allen going forward, then yes, the current multiple of around 16.5 could be correct, or even a little high. Goldman seems a bit short-term-oriented and pessimistic here, assuming this year's DOGE cuts are a one-time reset. Booz Allen projected a low double-digit decline in its civil business this year, which makes up 35% of its revenue. But that means its defense and intelligence businesses, which make up 65% of revenue, are still likely to grow in the double digits, in order for the whole company to reach management's 2% overall growth projection. Of note, Booz Allen has grown at an 11.7% organic rate over the past three years. But if the civil business stabilizes after this year, it seems like Booz Allen should continue to resume its prior growth rate in 2027. That means its P/E multiple could go back to the low-20s, which has been about its average over the past decade. Thus, long-term-oriented investors may wish to look at Booz Allen shares on this recent weakness. Before you buy stock in Booz Allen Hamilton, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Booz Allen Hamilton wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients have positions in Booz Allen Hamilton and has the following options: short December 2025 $55 puts on Booz Allen Hamilton. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Booz Allen Hamilton. The Motley Fool has a disclosure policy. Why Booz Allen Hamilton Stock Fell Today was originally published by The Motley Fool 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
6 days ago
- Business
- Yahoo
This Key Palantir Partner Was a Victim of DOGE Cuts, but Now the Stock's a Bargain
Booz Allen has been perceived as vulnerable to DOGE cuts, given that 100% of its business relates to government consulting. Last Friday, the company forecast a decline for its Civil division in the year ahead as a result. But its Defense and Intelligence segments are thriving, and the stock now looks cheap. 10 stocks we like better than Booz Allen Hamilton › Elon Musk recently stated he was going to "significantly" cut back his time at the newly established Department of Government Efficiency (DOGE). While the DOGE initiative is officially sanctioned to run through July 4, 2026, a lot of the prospective cuts to government funding have already been reviewed. As such, it's probably a good time to look at government-oriented consultancy stocks that have sold off in the recent austerity push. Perhaps no other consultant has been demonized as much as Booz Allen Hamilton (NYSE: BAH), just due to the fact that it gets 100% of its business from the U.S. government. But that exposure is because of Booz's mission-critical position at the nexus of Defense, Intelligence, and leading-edge tech. For instance, Palantir (NASDAQ: PLTR) inked a big partnership with Booz Allen last December to implement its AI software for Defense agencies. Last week, Booz Allen's stock sold off to 52-week lows on its fiscal fourth-quarter earnings call, revealing some near-term declines in one of its segments due to DOGE. However, the one-time reset and sell-off could be a great opportunity for long-term investors to buy the stock of this high-quality U.S. government supplier. Booz Allen sold off after management predicted a decline in its Civil agencies business as a result of DOGE cuts and slower government procurement. Booz Allen now predicts low double-digit declines in that segment this year and announced it would lay off around 7% of its workforce as a result. In its recently completed fiscal 2025, Booz Allen got 35% of its revenue from its Civil business, while the remaining 65% was divided between Defense (49%) and Intelligence (16%). The positive is that it doesn't appear Booz Allen's Defense and Intelligence franchises will be affected. After all, even the recent budget passed by the Republican-controlled House of Representatives provided for a $150 billion increase to the defense budget, amounting to a high-teens growth figure. In fact, even though Booz Allen sees a low double-digit decline in its Civil business in fiscal 2026, the company still guided for overall 0% to 4% companywide growth this year. That means the Defense and Intelligence franchises will likely grow by double digits, in line with overall budget growth and in line with the past few years. With partnerships with top AI and tech companies like Palantir and all three of the major cloud giants, Booz Allen is at the heart of adapting the latest and greatest commercial innovations into usable products for government and defense agencies. Booz's main technologies involve key strategic areas like artificial intelligence, cybersecurity, digital transformation, space exploration, and next-gen technologies, including quantum computing. Moreover, management pointed out the company's strong footprint in key areas within these categories, such as China-related defense, the southern border, and potentially the recently announced "Golden Dome" defense project, regarding which CEO Horacio Rozanski said, "We believe we have unique technology and capability to bring to bear." Needless to say, the U.S. can't really fall behind in these critical areas, which likely means these segments will continue growing strongly. Looking forward to its guidance for the fiscal year ahead, management expects Booz Allen to earn between $6.20 and $6.55 in non-GAAP (adjusted) EPS, relative to the $6.35 Booz Allen earned in the recently completed year. That puts the company's forward P/E ratio at about 16.9, much lower than the peak reached last year when the company's growth outlook was unimpeded and still significantly lower than the low-20s average of the past 10 years or so. However, assuming the pullback in the Civil business is a one-time reset, earnings should continue to grow strongly beyond the first half of this year. It should be noted that Booz Allen has been overdelivering compared to its long-term targets over the past three years, growing its top line at 11.7% versus initial targets of 5% to 8% while also expanding margins. When combined with a continued share repurchase program -- Booz Allen retired 4.3% of its stock last year -- it's not a stretch to see earnings growing at a mid- to high-teens level once the reset on the Civil business is behind it. Analysts still see Booz Allen continuing to grow earnings in fiscal 2027 (ending in March 2027), with an average estimate of $7.46 per share and the highest estimate at $7.90. Even putting just a 20 P/E multiple on those earnings, the low end of historical, would put the stock around $150 versus $108 today. Add in the company's 2% dividend, and Booz Allen seems to be a solid value pick after its post-earnings pullback. Before you buy stock in Booz Allen Hamilton, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Booz Allen Hamilton wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients positions in Booz Allen Hamilton and has the following options: short December 2025 $55 puts on Booz Allen Hamilton. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Booz Allen Hamilton. The Motley Fool has a disclosure policy. This Key Palantir Partner Was a Victim of DOGE Cuts, but Now the Stock's a Bargain was originally published by The Motley Fool
Yahoo
27-05-2025
- Business
- Yahoo
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 Investment Research
Yahoo
26-05-2025
- Business
- Yahoo
Accenture Gets Buy Rating From TD Cowen Despite Booz Allen Market Signals
On May 24, TD Cowen reiterated its Buy rating for Accenture plc (NYSE:ACN) along with a stable $336 price target. Analyst Bryan Bergin pointed towards the possible effects on Accenture after Booz Allen revealed pressures in its civilian practice, which is thought to reflect the current administration's goal of optimizing government spending. Pixabay/Public Domain Despite the lack of news about Booz Allen, Bergin pointed out that the most recent information offered new perspectives on the state of the market. Based on the dynamics seen at Booz Allen, the analyst projected that Accenture plc (NYSE:ACN) might encounter a headwind of about -1%. When it comes to investors, these insights are especially relevant because Accenture's performance is frequently regarded as a gauge for the consulting and outsourcing sector. To that end, both investors and market observers will be watching Accenture's response to changes in government spending trends and the general need for consulting services. According to TD Cowen, the company's performance and strategies in the upcoming quarters, including its following earnings report, which is scheduled for June 20, will presumably offer more proof of its adaptability and ability to maintain growth. While we acknowledge the potential of ACN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACN and that has 100x upside potential, check out our report about the cheapest AI stock. Read Next: and Disclosure: None.
Yahoo
24-05-2025
- Business
- Yahoo
Booz Allen downgraded to Market Perform from Outperform at Raymond James
Raymond James analyst Brian Gesuale downgraded Booz Allen (BAH) to Market Perform from Outperform with no price target following this morning's 'weak' quarterly report and guidance. The company's heavier civil government mix and challenges aligning with the current administration, along with difficult comps, create a backdrop of significant organic growth deceleration, while margins 'look like they will be heavy as well' given ongoing investment in long-term growth areas, the analyst tells investors. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on BAH: Disclaimer & DisclosureReport an Issue BAH Earnings: Booz Allen Stock Buckles on Bungled Earnings Booz Allen Reports Strong FY25 Financial Results Options Volatility and Implied Earnings Moves Today, May 23, 2025 Booz Allen sees FY26 free cash flow $700M-$800M Booz Allen falls 14% to $111.00 after Q4 results, FY26 guidance
