Yahoo Finance Results: Booz Allen Hamilton Holding Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts
Investors in Booz Allen Hamilton Holding Corporation (NYSE:BAH) had a good week, as its shares rose 2.4% to close at US$76.65 following the release of its annual results. Booz Allen Hamilton Holding reported US$7.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.41 beat expectations, being 9.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Booz Allen Hamilton Holding
Taking into account the latest results, the most recent consensus for Booz Allen Hamilton Holding from 13 analysts is for revenues of US$8.07b in 2021 which, if met, would be a solid 8.1% increase on its sales over the past 12 months. Statutory earnings per share are predicted to accumulate 2.2% to US$3.51. Before this earnings report, the analysts had been forecasting revenues of US$7.98b and earnings per share (EPS) of US$3.42 in 2021. So the consensus seems to have become somewhat more optimistic on Booz Allen Hamilton Holding's earnings potential following these results.
The consensus price target was unchanged at US$83.27, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Booz Allen Hamilton Holding analyst has a price target of US$95.00 per share, while the most pessimistic values it at US$63.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Next year brings more of the same, according to the analysts, with revenue forecast to grow 8.1%, in line with its 7.2% annual growth over the past five years. Compare this with the wider industry (in aggregate), which analyst estimates suggest will see revenues grow 11% next year. So it's pretty clear that Booz Allen Hamilton Holding is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Booz Allen Hamilton Holding following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Booz Allen Hamilton Holding's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Booz Allen Hamilton Holding analysts - going out to 2025, and you can see them free on our platform here.
Even so, be aware that Booz Allen Hamilton Holding is showing 2 warning signs in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
