After posting record annual revenue for its prior fiscal year, consulting firm Booz Allen Hamilton expects a significant uptick in federal funding will power more growth in the next year.
The company, which receives the bulk of its earnings from federal contracts, on Monday reported a 3.4 percent increase in revenue for the period that ended on March 31, to $1.6 billion. Net income was $84.89 million, or 58 cents a share. For its full fiscal year, Booz Allen announced a 6.3 percent increase in revenue to $6.17 billion, and $305 million in net income, or $2.05 per share.
Booz Allen executives say the $1.3 trillion omnibus spending bill that President Trump signed into law in March is spurring more business in defense and cybersecurity. The measure boosted both military and nondefense spending by billions of dollars.
“With government funding now beginning to flow, we are seeing lots of opportunities across our contract and client base,” Chief Executive Officer Horacio Rozanski told investors.
The company expects fiscal 2019 earnings per share of $2.35 to $2.50. The firm anticipates it will return $350 million to investors.
“Share repurchases is certainly a lever that we’ve been pulling,” Chief Financial Officer Lloyd Howell Jr. said. “We’re going to pull that lever depending upon market conditions.”
Booz Allen bought cybersecurity firm Morphick Inc. in fiscal 2018 and Howell said the company continues to weigh additional acquisitions.
The firm is under investigation by the Department of Justice over its billing of costs to the U.S. government. Rozanski declined to provide investors any updates on the case.
