Booz Allen Stock (NYSE: BAH) Hits 52 Week Low Despite Earnings Beat

Booz Allen stock (NYSE: BAH) started the trading day on the back foot, hitting an intra-day low of $121.02 close to the open, before rallying somewhat to $128.53. The low also reflects a new 52 week bottom for the stock which is now down 8.70% over the past 12 months.

Earnings actually came in above expectations, with the firm beating on both top and bottom lines. The company reported an adjusted earnings per share (EPS) of $1.55, surpassing the analyst consensus of $1.52. Moreover, the company's quarterly sales, backlog growth, and other financial metrics reflect positive developments.

• Revenue Growth: The company registered quarterly sales of $2.92 billion, representing a 13.5% increase year-on-year, and exceeding the street estimate of $2.87 billion.
• Operating Income: The quarterly operating income stood at $291.26 million, up from $247.56 million the previous year.
• Dividend Announcement: Booz Allen declared a quarterly dividend of $0.55 per share, marking a 7.8% hike.

Booz Allen's quarterly book-to-bill ratio was 0.37x. The company also experienced an increase in client staff headcount by 1,800 compared to the prior year, indicating a 6.0% rise. Additionally, the company's cash and equivalents as of December 31 stood at $453.54 million, with long-term debt totaling $3.29 billion.

The company has raised its fiscal 2025 outlook, now anticipating revenue growth between 12% and 13%, estimating a total of $11.94 billion to $12.05 billion. Furthermore, Booz Allen expects adjusted EPS for fiscal 2025 to be in the range of $6.25 to $6.40.

Booz Allen Hamilton's third-quarter results demonstrate significant growth and improvement across various financial metrics. The company's updated fiscal 2025 outlook reflects a positive stance towards sustained growth, despite recent challenges in stock performance.