Booz Allen Hamilton Holding Corp. (BAH Quick QuoteBAH - Free Report) reported mixed third-quarter fiscal 2022 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.

The earnings beat impressed the market as the stock jumped 2% since the release. The stock declined 8% over the past year compared with 4.6% decline of the industry it belongs to.

Quarterly adjusted earnings per share of $1.02 beat the consensus mark by 5.2% but declined 1.9% on a year-over-year basis. The bottom line benefited from solid top-line growth and strong margin performance.

Revenues, Backlog & Headcount Increase Y/Y

Total revenues of $2 billion missed the Zacks Consensus Estimate by 4.4% but increased 6.6% on a year-over-year basis. Revenues, excluding billable expenses, were $1.4 billion, up 6.2% on year over year. Billable expenses contributed 30.6% to revenues.

Total backlog increased 19.2% from the prior-year quarter’s reported figure to $27.8 billion. Funded backlog of $4 billion increased 11.7% year over year. Unfunded backlog was up 57.7% to $9.4 billion. Priced options were up 4.4% to $14.3 billion. Book-to-bill ratio was 0.39, down 21.9% year over year. Headcount of 29,453 increased 6.8% year over year.

Strong Margin Performance

Adjusted EBITDA amounted to $222.1 million, up 8.1% year over year. Adjusted EBITDA margin on revenues was 10.9%, up from the year-ago quarter’s figure of 10.8%. Adjusted EBITDA margin on revenues, excluding billable expenses, increased to 15.8% from 15.5% in the year-ago quarter.

Key Balance Sheet & Cash Flow Numbers

Booz Allen Hamilton exited the quarter with cash and cash equivalents of $642.9 million compared with $621.9 million at the end of the prior quarter. Long-term debt (net of current portion) was $2.7 billion compared with $2.8 billion in the prior quarter.

The company generated $21.4 million of net cash from operating activities and capital expenditures were $21.9 million. The company paid out dividends worth $49.8 million and repurchased shares worth $82.8 million in the reported quarter.

Updated Fiscal 2022 Outlook

Booz Allen currently projects revenue growth at 5.7-7.2%, compared with the previous projection of 7-10%. Adjusted EBITDA margin on revenues is anticipated to be around 11% compared with the previous expectation of mid-10%. Net cash provided by operating activities is expected in the range of $700-$750 million, lower than the previous expectation of $800-$850 million. The company continues to expect adjusted EPS in the range of $4.1-$4.3 per share.

Booz Allen Hamilton currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Business Services Companies

Robert Half International (RHI Quick QuoteRHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.

Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1.

Automatic Data Processing (ADP Quick QuoteADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins (ROL Quick QuoteROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.