Booz Allen Swings to 4Q Loss on Accounting Cost Tied to DOJ Probe

By Will Feuer

Booz Allen Hamilton Holding Corporation swung to a loss in the fiscal fourth quarter due to an increase in reserves it held for talks to settle a U.S. government investigation.

The technology consulting and engineering services company posted a loss of $68.4 million, or 52 cents a share, for the three months ended March 31, compared with a profit of $90.9 million, or 68 cents a share, in the same quarter a year ago.

Revenue rose 8.7% to $2.43 billion. Analysts polled by FactSet were expecting revenue of $2.39 billion.

During the fourth quarter, Booz Allen booked a $226 million charge for to a U.S. Department of Justice's investigation into the company. The investigation, previously disclosed in 2017, is related to "highly technical elements of the company's cost accounting and indirect cost charging practices with the U.S. government," Booz Allen said.

Stripping out that charge and other one-time items, adjusted earnings were $1.01 a share, above analyst estimates of 95 cents a share, according to FactSet.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

May 26, 2023 07:30 ET (11:30 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.