Government consulting firm Booz Allen Hamilton (NYSE: BAH) will be announcing earnings results this Friday morning. Here’s what to look for.
Booz Allen Hamilton missed analysts’ revenue expectations last quarter, reporting revenues of $2.78 billion, down 6.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.
Is Booz Allen Hamilton a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Booz Allen Hamilton’s revenue to decline 3.7% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Booz Allen Hamilton has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Booz Allen Hamilton’s peers in the professional services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ManpowerGroup delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 2.9%, and Marsh reported revenues up 6.2%, topping estimates by 1.7%. ManpowerGroup traded up 34.1% following the results while Marsh was down 3.3%.
Read our full analysis of ManpowerGroup’s results here and Marsh’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 4.2% on average over the last month. Booz Allen Hamilton is up 3.7% during the same time and is heading into earnings with an average analyst price target of $84 (compared to the current share price of $66.22).
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