News round-up: Booz Allen, Computer Sciences Corp, Boston Co

by Vault Consulting Editors | February 09, 2011

  • My Vault

Welcome to the Wednesday edition of the news round-up. Here at Consult THIS, we firmly believe that Wednesdays exist solely to be overcome; it is but a day of limbo between the clear definition of the early week blues and the late week elation. As such, Wednesday round-ups are to be revered as heralds of the coming dawn. Please, refrain from considering them as anything but sacred.

Headlining today's herald is Booz Allen Hamilton, which released its third quarter results today for the first time as a public company. While the firm has divulged financial results before, this occasion marked Booz Allen's first-ever full quarter as a public company following its IPO in November 2010. And a fine quarter to start! The public sector consultancy reported a profit of $23.6 million in Q3 this year, compared to the measly $1.3 million the firm earned this time last year. Likewise, revenue rose more than 10 percent from Q3 2010, coming in at $1.39 billion. Bloomberg reports that Booz Allen's numbers bested Wall Street analysts' predictions for the firm. "Booz Allen's services grew across all major markets—defense, intelligence, and civil," said Ralph Shrader, CEO and Chairman, "with the highest growth coming in areas related to cybersecurity, health, and consulting services for civil government agencies." Based on its positive results through Q3, the firm is predicting a modest year-over-year revenue increase of about $5.6 million. Despite the company's profitability and the optimism coming from the Booz Allen camp, the firm still holds over $1 billion in debt.

Another public consultancy, Computer Sciences Corporation (CSC), also reported its third quarter data today with less reason for optimism than its competitor Booz Allen. While revenue rose 1.4 percent from last year's Q3 to top $4 billion, that milestone wasn't enough to meet analysts' predictions. Accordingly, the firm slashed revenue estimates for the full year from $18 billion (predicted at the end of Q2 in November) to $16.2 billion. CSC remains highly profitable, and its executives bullish, despite the admission that "delays by the federal government" to award lucrative contracts have hurt revenue numbers. Chairman and CEO Michael W. Laphen mirrored his Booz Allen counterpart by noting particularly robust growth in CSC's cybersecurity and healthcare units.

Lastly, I'd like to divert some attention to a post on my colleague's blog at In the Black. There, Derek discusses a particularly bizarre and hilarious incident in which one Donald Langueuil, formerly of SAC Capital, was recorded by federal investigators detailing his efforts to shred all evidence of the insider trading scheme he was recently involved in. Read the transcript, it's worth all 30 seconds. Now that you're familiar with the incriminating monologue, you'll understand why media outlets have had a field day with the story. And that is what leads us back to consulting! Countless publications have dug into Langueuil's "sweet life" of luxury and excess, focusing on his fiancée of equal privilege. Enter Mackenzie Mudgett, a 32 year old Wharton grad who currently works as a project leader for the Boston Consulting Group. Now, no one is suggesting that she was in on the crime, or even aware of it; most attention has been fixed on how the couple's "perfect" lives have now been shattered, and the apparent joy that us simpletons are supposed to derive from that. What does this have to do with consulting, you ask? Well, fundamentally, nothing. It is interesting though. Can Ms. Mudgett continue to cavort and caper with business's wealthy elite from here on? Will her BCG bosses trust that she was completely oblivious? Potential clients?

For more information:
Bloomberg: Booz Allen profit rises in fiscal third quarter
CSC Reports Third Quarter Results
Business Insider: Meet the Wall Street Lady Whose Hedge Fund Fiancé Just Got Charged with Insider Trading

Filed Under: Consulting

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