Booz Allen Hamilton Holding Corp. (BAH) Wednesday reported a higher fourth-quarter profit amid flat revenues in a challenging market environment. Adjusted earnings and revenues topped analysts' expectations.
The provider of management and technology consulting services also announced an 11 percent increase in quarterly dividend and forecast fiscal year earnings above estimates. The shares are up about 9 percent in the morning trade.
Ralph Shrader, chairman, chief executive officer, and president said "Booz Allen is winning new work in all of our major markets - with large contract awards in the fourth quarter of fiscal 2013 from the US Army, Air Force, Navy and Marine Corps, NASA, the Department of Homeland Security, Department of the Interior, and the intelligence agencies."
Announcing its preliminary results, the company said its fourth-quarter net income increased to $54.81 million or $0.37 per share from $50.63 million or $0.36 per share in the previous year.
On an adjusted basis, earnings per share were $0.40, while the company posted $0.44 per share in the prior year. The decline was primarily driven by the increased interest expense of approximately $5.1 million related to the refinancing transaction associated with the special dividend declared in July 2012.
On average, seven analysts polled by Thomson Reuters expected the company to earn $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 0.3 percent to $1.55 billion and came above analysts' estimate of $1.51 billion.
Total operating costs and expenses declined to $1.43 billion from $1.44 billion a year earlier.
Total backlog as of March 31, 2013, increased to $11.83 billion from $10.80 billion in the prior year.
The company announced a regular cash dividend of $0.10 per share, an 11 percent increase from last year, to stockholders of record on June 10, 2013, payable on June 28.
For fiscal 2014, the company expects earnings per share to be in the range of $1.47 to $1.57, and adjusted earnings per share of $1.55 to $1.65 per share. The firm forecast a low single digit decline in revenue.
Analysts expect the company to report earnings of $1.50 per share, on revenues of $5.75 billion for fiscal 2014.
BAH is currently trading at $18.39, up $1.42 or 8.37 percent, on the NYSE.
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