Booz Allen Hamilton (BAH) Reports Strong 3Q Book-to-Bill; RBC Capital Reiterates Outperform

RBC Capital maintained an Outperform rating on Booz Allen Hamilton (NYSE: BAH), and cut the price target to $35.00 (from $36.00), following the company's 3Q earnings report. BAH reported adjusted EPS of $0.41, which was 3% better than consensus estimates. Booz posted a record book-to-bill of 3.5x last quarter, and has followed up on this performance with another seasonally strong .64x book-to-bill this quarter. Management still expects to see modest organic growth next year on the back of their strong bookings, and with staffing levels, onboarding and bid & proposal all ramping to support this effort the EBITDA margin profile is still expected to be flat y/y at roughly 9.9%.

Analyst Robert Stallard commented, "BAH reported F3Q16 GAAP/Adj. EPS of $0.71/$0.41, which was 80%/3% better than consensus estimates. The strong GAAP beat was driven by the release of a tax reserve, but the underlying Adj. EPS was in-line with our expectations. Topline was flat at $1.3bn, and operating margin was also flat as expected due to increased bid and proposal activity in order to support a revenue ramp. BAH tightened its full-year guidance for sales growth of 0-2% (vs prior +/-2%), GAAP EPS of $1.87-$1.93 (vs. prior 1.55 -1.65) and Adjusted EPS of $1.61-$1.67 (vs. prior $1.60 - 1.70)."

For an analyst ratings summary and ratings history on Booz Allen Hamilton click here. For more ratings news on Booz Allen Hamilton click here.

Shares of Booz Allen Hamilton closed at $27.62 yesterday.

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