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Booz Allen Hamilton Holding Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 7:12AM

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Just the facts, Fool.

Booz Allen Hamilton Holding (NYSE: BAH) reported earnings on May 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Booz Allen Hamilton Holding beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share shrank. GAAP earnings per share grew.

Gross margins contracted, operating margins were steady, net margins grew.

Revenue details
Booz Allen Hamilton Holding reported revenue of $1.55 billion. The seven analysts polled by S&P Capital IQ wanted to see a top line of $1.51 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. Non-GAAP EPS of $0.40 for Q4 were 9.1% lower than the prior-year quarter's $0.44 per share. GAAP EPS of $0.37 for Q4 were 2.8% higher than the prior-year quarter's $0.36 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.5%, 10 basis points worse than the prior-year quarter. Operating margin was 7.3%, much about the same as the prior-year quarter. Net margin was 3.5%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.46 billion. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $5.73 billion. The average EPS estimate is $1.50.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 60 members out of 69 rating the stock outperform, and nine members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Booz Allen Hamilton Holding a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Booz Allen Hamilton Holding is hold, with an average price target of $14.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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