Wall Street analysts project an earnings per share (EPS) of $1.48 and revenue of approximately $2.87 billion for the upcoming quarter.
Booz Allen Hamilton has a history of exceeding market expectations, with an average surprise of 11.7% over the last four quarters.
The company’s financial metrics reveal a price-to-earnings (P/E) ratio of 19.87, a debt-to-equity ratio of 3.01, and an earnings yield of 5.03%.
Booz Allen Hamilton Holding Corporation (NYSE:BAH), a leading management and information technology consulting firm, primarily serves the U.S. government, including defense, intelligence, and civil markets. Competing with giants like Accenture and Deloitte, Booz Allen Hamilton is renowned for its robust performance and ability to surpass market expectations.
As the firm approaches its quarterly earnings release on January 31, 2025, analysts are forecasting an EPS of $1.48 and expect revenues to hit around $2.87 billion. Historically, the company has outperformed the Zacks Consensus Estimate in three of the last four quarters, boasting an average surprise of 11.7%.
For the forthcoming quarter, revenue estimates are pegged at $2.84 billion, indicating a 10.5% year-over-year growth. This anticipated increase is attributed to robust service demand, an uptick in headcount, and higher billable expenses. Consequently, the expected rise in earnings is linked to these increased revenues for the quarter ending December 2024.
Examining Booz Allen Hamilton’s financial metrics offers insights into its market valuation. The firm’s P/E ratio stands at approximately 19.87, its price-to-sales ratio at about 1.42, and its enterprise value to sales ratio is around 1.69. These figures indicate the market’s valuation of the company’s earnings and sales.
Notably, Booz Allen Hamilton’s debt-to-equity ratio is high at approximately 3.01, suggesting a significant level of debt. However, with a current ratio of about 1.56, the company maintains a reasonable level of short-term assets to cover its short-term liabilities. The earnings yield is calculated to be around 5.03%, providing an insight into the return on investment.
