Booz Allen Hamilton (NYSE: BAH) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has reported earnings of 39 cents per share for the second quarter of its 2016 fiscal year to exceed Wall Street forecasts by 4 cents.
Booz Allen’s fiscal year runs on an April-March basis.
The firm posted a profit decline of approximately 13.89 percent from fiscal 2015 second quarter to $56.21 million as the company transitioned out of its exclusive prime position on a multibillion dollar contract to help manage the Defense Department‘s Survivability/Vulnerability Information Analysis Center, or SURVIAC.
Revenue increased 1.53 percent from the prior year period to $1.32 billion on awards via task orders and new contracts to beat analyst estimates of approximately $1.26 billion in second quarter sales.
One of Booz Allen’s significant bookings included the potential $937 million contract for the Defense Department‘s Global Threat Mitigation Program, which CEO Horacio Rozanski described to investors in a subsequent call as one of the “largest single-award wins” in the firm’s history.
Rozanski also told investors the firm’s acquisition strategy would be “smaller, more capability-based” and focus on organic growth in light of consolidation moves in the GovCon services sector within this year.
The firm held to its prior guidance of between $1.55 and $1.65 earnings per share and $5.17 billion-to-$5.37 billion in sales for its 2016 fiscal year.
Booz Allen said the revenue gap from the SURVIAC exclusivity transition came in at the $100 million-to-$200 million it expected and communicated to investors.
The firm reported a total backlog of $12.55 billion as of Sept. 30, its highest in three years and a figure 15.24 percent higher than reported in the second quarter of its 2015 fiscal year.
Booz Allen shares have risen 4.18 percent from the year’s start and are up 7.34 percent over 12 months.
