Booz Allen Hamilton raised its annual adjusted earnings forecast after a quarter in which revenue declined but net income improved. The fiscal second quarter ended in September, despite belonging to the company’s 2027 financial year. Free cash flow fell from a year earlier, while the order backlog increased and management narrowed its revenue forecast.
Economics & Markets··Midday
Revenue falls while adjusted earnings increase
US consulting and technology-services group Booz Allen Hamilton released its fiscal second-quarter results on 23 October. Revenue declined while adjusted earnings per share increased. The quarter ended on 30 September and belongs to the company’s 2027 financial year.[1], [2]
Revenue fell 3.9 per cent to 2.778 billion dollars, while net income rose 3.4 per cent to 181 million dollars. Reported earnings per share increased from 1.42 dollars to 1.50 dollars. The adjusted measure rose 18.1 per cent from 1.49 dollars to 1.76 dollars, with adjusted net income reaching 211 million dollars.[1]
Quarterly cash flow declines as backlog grows
Operating cash flow decreased 30.2 per cent to 294 million dollars. Free cash flow fell 33.4 per cent from 395 million dollars to 263 million dollars. The order backlog increased 1.9 per cent to 41 billion dollars. New quarterly orders were equivalent to 1.5 times revenue, compared with a ratio of 1.1 over the trailing twelve months.[1]
Management raises the annual earnings range
Management lifted full-year adjusted earnings-per-share guidance from 6.00–6.35 dollars to 6.50–6.70 dollars. It narrowed the revenue forecast from 11.2–11.7 billion dollars to 11.3–11.6 billion dollars. The free-cash-flow outlook became 850–925 million dollars, compared with 825–925 million dollars previously. Those forecasts cover the full financial year, extending beyond the September-ended quarter.[1]
