What Happened?
Shares of government consulting firm Booz Allen Hamilton (NYSE:BAH) fell 15% in the afternoon session after the company reported weak first quarter 2025 result: Revenue and EBITDA both missed. The shortfall came from slow contract signings, with the book-to-bill ratio slumping to 0.71x, showing the firm added less work than it delivered.
Looking ahead, the company's full-year revenue guidance missed and its full-year EPS guidance fell short of Wall Street's estimates. Overall, this quarter could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Booz Allen Hamilton? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Booz Allen Hamilton’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Booz Allen Hamilton and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 8.3% as stocks of consulting firms fell after Defense Secretary Pete Hegseth announced that the government would cancel some consulting contracts.
Also, another consulting firm, Accenture, reported its Q4 2024 (fiiscal Q2 2025) financial results and raised concerns about weaker sales in the fed vertical. Accenture CEO Julie Spellman Sweet noted that the new administration is focused on improving government efficiency, leading to a slowdown in procurement processes and negatively impacting sales.
Booz Allen Hamilton is down 15.4% since the beginning of the year, and at $108.32 per share, it is trading 41.8% below its 52-week high of $186 from October 2024. Investors who bought $1,000 worth of Booz Allen Hamilton’s shares 5 years ago would now be looking at an investment worth $1,421.
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