Booz Allen Hamilton reports higher profit despite dip in revenue
- July 31, 2013
THE TAKE: McLean-based-Booz Allen Hamilton Holding Corp. (NYSE:BAH), the parent company of management and technology consulting firm Booz Allen Hamilton Inc., reported a 13.5 percent increase in earnings for the first quarter of fiscal 2014 despite slightly lower revenue. Booz Allen’s fiscal year runs from April 1 to March 31, with the first quarter of fiscal 2014 ending June 30.
Net income: Increased 13.5 percent to $70.3 million from $61.9 million in same quarter last year.
Adjusted net income: Rose to $73.2 million from $66 million in the prior year period.
Revenue: Dropped 0.3 percent to $1.428 billion.
Diluted earnings per share: 48 cents, compared with 43 cents in the prior year period.
Adjusted diluted earnings per share: 50 cents, compared with 46 cents the year before.
Total backlog: $11.27 billion as of June 30.
THE COMPANY’S TAKE: “We are focused on the important things that we can control in the midst of unprecedented external factors and uncertain market conditions,” Ralph W. Shrader, Booz Allen’s chairman, CEO and president, said in a statement.
Shrader said the company continues to win significant contract awards in its major markets, including large new and recompete wins from the Department of Veterans Affairs, Department of Interior, US Army, Navy, and Coast Guard, and the National Geospatial-Intelligence Agency.
The CEO said the company is investing in areas such as engineering and advanced technologies, “including cyber, cloud, and rapid prototyping that we believe have growth potential and attractive margins.”
The company said the 0.3 percent decrease in revenue in the first quarter was attributed to a reduction in billable hours due to modestly lower demand in an “uncertain federal budget environment. Fewer billable hours combined with the need to manage costs and capacity has resulted in reductions in headcount; however, a higher level of productivity of consulting staff, higher billable expenses, and revenue from acquisitions of approximately $80 million during the quarter ended June 30, 2013 helped minimize the impact of headcount declines.”
For fiscal 2014, the company reaffirmed prior guidance of expectations: diluted EPS of $1.47 to $1.57, and adjusted diluted EPS of $1.55 to $1.65 per share.