Booz Allen Lifts Earnings Outlook as 2Q Profit Climbs

Dow Jones
Oct 23
 
 

Booz Allen Hamilton raised its full-year earnings outlook, after profit climbed in its latest fiscal quarter even as revenue fell.

The company on Friday posted a second-quarter profit of $181 million, or $1.50 a share, up from $175 million, or $1.42 a share, a year earlier.

Stripping out one-time items, earnings for the three months ended Sept. 30 came in at $1.76 a share. Analysts polled by FactSet expected adjusted earnings of $1.48 a share.

Revenue fell 3.9% to $2.78 billion, just below Wall Street models for $2.81 billion.

Booz Allen said it continues to see momentum across its national security portfolio, prompting the company to build and scale its cyber and defense-technology products. The company's civil business is performing in line with expectations, it added.

Booz Allen cut thousands of jobs last year, facing contract reductions in its civil business. The Trump administration has cut spending on federal contracts and specifically has pushed consulting companies, including Booz Allen, to justify their work and propose substantial cost savings.

Total backlog stood at about $41 billion at the end of the second quarter, up 1.9% from last year. Total headcount, meanwhile, stood at roughly 31,000, down 4.6% from a year earlier.

Looking ahead, Booz Allen said it now expects adjusted earnings of $6.50 to $6.70 a share for fiscal 2027, up from a prior forecast of $6 to $6.35 a share. The company additionally narrowed its revenue outlook to between $11.3 billion and $11.6 billion, compared with a previous view for $11.2 billion to $11.7 billion.

Analysts are looking for adjusted earnings of $6.34 a share on revenue of $11.42 billion.

Shares rose 5%, to $82.50, in premarket trading.

 
 

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