Booz Allen Slightly Beats Expectations

Booz Allen Hamilton Holding Corp. said profit rose and revenue edged higher in its third quarter, as the government consulting firm was aided by an income tax benefit.

The company's earnings results slightly beat Wall Street expectations.

Booz Allen also raised its regular quarterly dividend to 15 cents a share from 13 cents.

The McLean, Va.-based firm mostly relies on contracts from the U.S. government to grow its top line. Its backlog edged up 20% to $12.07 billion at the end of December. Chief Executive Horacio Rozanski said the company expects organic revenue growth this fiscal year that can carry over into the next fiscal year.

For the quarter ended Dec. 31, Booz Allen reported net income of $108.1 million, or 71 cents a share, up from $52.8 million, or 35 cents a share, in the year-prior period. Excluding items such as the release of income tax reserves related to an acquisition in 2008, net income was 41 cents a share, up from 36 cents a year ago.

Revenue was $1.31 billion, up slightly from $1.3 billion in the year-earlier period. Analysts polled by Thomson Reuters projected per-share earnings of 40 cents a share on $1.32 billion in revenue.

Booz Allen also narrowed its full-year revenue guidance, projecting it to be flat to up 2%, compared with its previous range of down 2% to up 2% from the year prior. The company also now expects adjusted full-year earnings in the range of $1.61 to $1.67, from a range of $1.60 to $1.70, which it said reflects an increase in investment in bid-and-proposal and hiring activities.

Shares, up 6.91% in the last three months, were inactive in premarket trading.

(END) Dow Jones Newswires

January 27, 2016 08:45 ET (13:45 GMT)

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