Why Did Booz Allen Hamilton Plunge 11.48% Ahead of Earnings?

On May 23, 2025, Booz Allen Hamilton experienced a significant drop of 11.48% in pre-market trading, sparking concerns among investors and analysts alike.

Booz Allen Hamilton is set to release its fourth-quarter fiscal 2025 earnings report on May 23, ahead of the market opening. The company has a strong track record of exceeding earnings estimates, surpassing expectations in three of the past four quarters with an average surprise of 6.7%.

Analysts anticipate that the company's revenue for the upcoming quarter will reach $3.02 billion, reflecting an 8.9% increase from the previous year. This growth is expected to be driven by strong service demand, an increase in headcount, and higher billable expenses. Additionally, the consensus estimate for earnings per share (EPS) is $1.59, indicating a 19.4% year-over-year increase, likely fueled by robust operating performance.

Despite these positive projections, the company's Earnings ESP is +1.42%, and it holds a Zacks Rank of 4 (Sell), suggesting that an earnings beat may not be guaranteed this time around. Investors will be closely monitoring the earnings report to gauge the company's performance and future outlook.