Booz Allen Falls 4.3% as Civil Unit Drags Q2 Revenue Below Consensus
BAH sits 28% above its 52-week low of $59.5.
Summary
Revenue came in at $2.78B, down 3.9% year over year and just under consensus, while adjusted EPS of $1.76 beat by $0.28. The civil business is the problem: segment revenue fell 15% as government contracts shrink in size and scope and fewer new programs start, and management now guides civil flat to slightly down in Q3 and Q4. National security is holding up — revenue there rose less than 1%, or 6% excluding billable expenses, which fell 11%. The company raised FY adjusted EPS guidance to $6.50-$6.70 from $6.00-$6.35 and narrowed revenue to $11.3B-$11.6B, with Ultra Mission Solutions largely offsetting the softer civil outlook. Shares fell 4.3% Friday; the EPS raise against a revenue miss leaves the debate on whether cost control can carry the story while civil keeps contracting.
At the time of this announcement, BAH was trading at $75.95 on NYSE in the Technology sector, with a market capitalization of approximately $9.1B. The 52-week trading range was $59.50 to $109.10. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.