Booz Allen Hamilton Holding Corporation (NYSE:BAH) is scheduled to report Q2 earnings results on October 30, 2020.
The company is expected to report earnings of $0.92/share on revenue of $1.967 billion. The consensus earnings per share (EPS) of $0.92/share is based on a poll of 13 analysts and represents a growth in eps of 13.3% over the same quarter last year, when the company reported earnings of $0.81/share.
The revenue forecast of $1.967 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth in revenue of 8.1%. Last year the company reported $1.82 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from Booz Allen Hamilton Holding Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 5.2%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 31, 2020||$77.73||$81.76||5.2%||Increase|
|May 26, 2020||$75.81||$76.65||1.1%||Increase|
|January 31, 2020||$78.75||$78.04||−0.9%||Decline|
|November 1, 2019||$70.37||$74.28||5.6%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.55, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.55 implies a 0.5% chance of earnings manipulation.
Fundamentals And Technical Analysis
Booz Allen Hamilton Holding Corporation is currently trading at $77.88/share, down −1.5% for the day. The company is trading at approximately 87.1% of its 52-week high of $89.44/share. The company’s stock price is down −4.7% since the last earnings report and down −2.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 31.89 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 21.77 and a forward P/E multiple of 21.74.
Booz Allen Hamilton Holding Corporation’s current share price also implies a price-to-book (P/B) multiple of 12.16. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2021.Q1|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$77.88|
|P/E Ratio (Fwd)||21.7x|
|Total Debt / Total Capital||18.3%|
|Levered Free Cash Flow||$520.1 million|
|EV / EBITDA||16.5x|
Booz Allen Hamilton Holding Corporation is a large-cap stock with a market capitalization of $10.732 billion and a total enterprise value of $12.547 billion. The company operates in the Information Technology sector and the IT Services industry.
Booz Allen Hamilton Holding Corporation provides management and technology consulting, analytics, engineering, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations. It also provides analytics services, which focuses on delivering transformational solutions in the areas of decision analytics, including operations research and cost estimation; automation; and data science that include predictive modeling and machine learning, as well as new or emerging areas, such as deep learning and artificial intelligence. In addition, the company designs, develops, and implements solutions built on contemporary methodologies and modern architectures; delivers engineering services and solutions to define, develop, implement, sustain, and modernize complex physical systems; and provides cyber risk management solutions, such as prevention, detection, and cost effectiveness. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.