Booz Allen Hamilton Holding Corp (BAH) stock fell 5.13% on Friday as the defense contractor warned of a potential slowdown in federal funding due to the transition of the new Trump administration.
In its fiscal third-quarter earnings report, Booz Allen Hamilton said it expects to see some slowing and uncertainty in the procurement environment as the new administration sets its agendas, as has been the case with previous presidential transitions. The company's CEO Horacio Rozanski stated that funding will shift in line with the new administration's priorities, and the short-term effect on procurements and contracts is typically more pronounced for civilian agencies.
Despite the anticipated funding slowdown, Booz Allen Hamilton reported better-than-expected earnings and revenue for the quarter ended December 31. The company raised its full-year earnings guidance, now expecting adjusted diluted EPS of $6.25 to $6.40, compared with its previous guidance range of $6.10 to $6.30.
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