Booz Allen Shares Sink on Earnings Miss and Job Cuts Announcement

Published 5 hours agoBAH

Booz Allen Shares Sink on Earnings Miss and Job Cuts Announcement

Booz Allen Hamilton's stock faced a steep drop after revealing its latest financial results and outlook. The company reported a lower-than-expected adjusted earnings per share (EPS) of $1.38 for its fiscal first quarter, missing analyst projections of $1.52. Meanwhile, revenue slightly exceeded expectations, coming in at $2.94 billion compared to the forecasted $2.93 billion, according to insights from bizjournals.com.

Despite the marginal revenue beat, Booz Allen's full-year guidance disappointed. The company projected an adjusted EPS range of $5.80 to $6.05, falling short of the consensus estimate of $6.05, as noted by investing.com. In response to shrinking expectations driven by federal spending cuts, Booz Allen announced it would reduce its workforce by approximately 2,500 jobs, which amounts to about 7% of its employees, as reported by the Financial Times.

The announcement added to investor concerns, leading to a 7% intraday decline in Booz Allen's shares. This marks a troubling continuation for the company's stock, which has already fallen 43% since last November. These developments underscore the challenges Booz Allen faces amid a tightening fiscal landscape and the pressure to realign its costs and operations.

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