RBC Capital maintains Outperform on Booz Allen Hamilton (BAH); Says 4Q15 Was a Rare Miss
Get Alerts BAH Hot Sheet
Rating Summary:
11 Buy, 7 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 9 | Down: 10 | New: 42
Join SI Premium – FREE
RBC Capital maintains an Outperform rating on Booz Allen Hamilton (NYSE: BAH), and cuts the price target to $30.00 (from $34.00), following 4Q15 results. BAH missed EPS estimates by 2c at $0.29. Revenues were reported at $1,343M ( down 4% y/y). Analyst Steven Cahall says it was a rare miss.
Cahall commented on BAH, saying, "BAH reported 4Q15 EPS of $0.29, missing our/street $0.31 by ~8%. Revenues came in 7% light at $1,343m (-4% y/y) and this came down to an equivalent miss on EBIT as operating margin of 6.9% (+50bps y/y) met our forecast. BAH expects 'roughly flat' revenue in FY16 with growth guidance of +/- 2% y/y, which was ~3% below consensus. EPS is expected to be $1.55-$1.65 with adjusted EPS of $1.60-$1.70."
Cahall also added, "Speaking to investors post conference call, we think there was concern that BAH discussed M&A more aggressively than it had in prior Qs, including a reference to larger deals. This in part reflects more on the market, with peers making similar comments. Coupled with no special divi (none yet under CEO Horacio Rozanski) and a smaller ownership position by Carlyle we think there is concern that BAH may no longer be partial to special dividends. Special dividends remain a key feature for shareholders, and part of our OP thesis. Overall we think not too much should be read into the M&A discussion (management indicated that it was intended to be consistent with prior statements), but some valuation premium may be out of the stock until it can renew its cash deployment commitment."
For an analyst ratings summary and ratings history on Booz Allen Hamilton click here. For more ratings news on Booz Allen Hamilton click here.
Shares of Booz Allen Hamilton closed at $25.13 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- HSBC Downgrades DFI Retail Group Holdings (DFI:SP) (DFILF) to Hold, 'expect H&B to progress more slowly'
- Eni SpA (ENI:IM) (E) PT Lowered to EUR15.30 at HSBC, 'to reflect lower GGP profits after two unusually strong years'
- Inditex (ITX:SM) (IDEXY) PT Raised to EUR51 at HSBC
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT Change, GuidanceRelated Entities
RBC CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!