Government consultant Booz Allen Hamilton Holding Corp. said
profit in its latest quarter fell 9.6%, as higher spending offset a
revenue increase.
The McLean, Va.-based company was first hired by the government
in 1940 to help the Navy prepare for World War II. Booz Allen,
which went public in 2010, now generates almost all of its revenue
from the U.S. government. And like other companies that rely on
government spending, Booz Allen has had to contend with budget
uncertainty and lower government demand.
But on Wednesday, Chief Executive Horacio Rozanski said
confidence in the government contracting environment led the
company to increase indirect spending and headcount during the
quarter to support bid and proposal activity. Expenses rose 3.6%
during the period. The higher spending is expected to continue in
the current quarter but will decelerate later in the year, the CEO
said.
Mr. Rozanski said Booz Allen is on track to achieve its
full-year guidance and affirmed its projection for earnings of
$1.60 to $1.70 a share on roughly $5.48 billion in revenue.
Analysts have expected $1.60 a share and $5.27 billion, according
to Thomson Reuters.
In all for the quarter, Booz Allen reported a profit of $64.3
million, down from $71.1 million a year earlier. On a per-share
basis, earnings fell to 43 cents from 47 cents. Excluding items
like a debt write-off, per-share profit decreased to 44 cents from
50 cents. Revenue grew 2.2% to $1.35 billion.
Analysts projected 43 cents in earnings per share and $1.34
billion in revenue, according to Thomson Reuters.
Shares in the company, down about 8% over the past three months,
were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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