Earnings Beat: Booz Allen Hamilton Holding Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Booz Allen Hamilton Holding Corporation (NYSE:BAH) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.1% to hit US$3.1b. Booz Allen Hamilton Holding also reported a statutory profit of US$3.01, which was an impressive 115% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Booz Allen Hamilton Holding after the latest results.

View our latest analysis for Booz Allen Hamilton Holding

Taking into account the latest results, the current consensus from Booz Allen Hamilton Holding's nine analysts is for revenues of US$12.0b in 2025. This would reflect a satisfactory 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 12% to US$7.23. Before this earnings report, the analysts had been forecasting revenues of US$11.8b and earnings per share (EPS) of US$5.61 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target was unchanged at US$182, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Booz Allen Hamilton Holding, with the most bullish analyst valuing it at US$210 and the most bearish at US$142 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Booz Allen Hamilton Holding'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 9.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So although Booz Allen Hamilton Holding is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Booz Allen Hamilton Holding's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Booz Allen Hamilton Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Booz Allen Hamilton Holding going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Booz Allen Hamilton Holding that you should be aware of.

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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.