Booz Allen Hamilton Holding Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a sad week for Booz Allen Hamilton Holding Corporation (NYSE:BAH), who've watched their investment drop 13% to US$139 in the week since the company reported its quarterly result. It was not a great result overall. While revenues of US$2.9b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit US$1.27 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Booz Allen Hamilton Holding

Taking into account the latest results, the consensus forecast from Booz Allen Hamilton Holding's ten analysts is for revenues of US$11.8b in 2025. This reflects a decent 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to US$5.60. Before this earnings report, the analysts had been forecasting revenues of US$11.8b and earnings per share (EPS) of US$5.67 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 5.5% to US$161, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Booz Allen Hamilton Holding at US$175 per share, while the most bearish prices it at US$140. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Booz Allen Hamilton Holding's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Booz Allen Hamilton Holding is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Booz Allen Hamilton Holding's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Booz Allen Hamilton Holding going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Booz Allen Hamilton Holding (1 makes us a bit uncomfortable!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com