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Johnson & Johnson’s Executive Vice President, Chief Human Resources Officer Peter Fasolo to Retire; Kristen Mulholland Named Chief Human Resources Officer, Effective October 1, 2024

via Business Wire

Johnson & Johnson (NYSE: JNJ) today announced that Dr. Peter M. Fasolo will retire from his position as Executive Vice President, Chief Human Resources Officer at the end of this year, following 16 years of leadership and service to the Company. Throughout his distinguished career, Dr. Fasolo has worked with the organization’s Board of Directors and partnered with three company CEOs to shape and grow the Company’s human capital strategy.

He will be succeeded in this role by Kristen Mulholland, a strong Credo-based leader who has had an exceptional career with depth and breadth across the Company’s Innovative Medicine and MedTech sectors, managed business unit HR for the Company’s global corporate functions, and has led Corporate HR Services including Performance and Development and most recently Global Total Rewards. Ms. Mulholland will also be appointed as a member of Johnson & Johnson’s Executive Committee, effective October 1, 2024. Dr. Fasolo and Ms. Mulholland will work together during a transition period until Dr. Fasolo’s retirement at the end of this year.

“Peter has led J&J’s talent strategy for the past 16 years including remarkable leadership through the global pandemic and the separation of our consumer health business,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson. “Throughout his career, Peter has always led with two principles in the forefront of every decision and recommendation – Our Credo values and a deep responsibility to our employees. He leaves a legacy of strong leaders, deep bench strength and an inclusive, caring and patient-focused culture.”

Dr. Fasolo first joined Johnson & Johnson in 2004 as Worldwide Vice President, Human Resources in the MedTech segment. He also served as the Company’s Chief Talent Officer with responsibility for executive assessment and development. Dr. Fasolo became J&J’s CHRO and a member of the Executive Committee in 2010 and has transformed the HR function’s talent and leadership strategy. During his tenure, he strengthened the Company’s global Diversity, Equity & Inclusion outcomes and expanded employee benefits and policies by increasing paid time off for leaves such as military, parental, bereavement, volunteerism and mental well-being, and promoted a healthy workforce. In recognition of his contributions to the Human Resources profession and commitment to the well-being of our employees, Dr. Fasolo was named a National Academy Human Resources Fellow in 2017 and Human Resource Executive’s HR Executive of the Year in 2022.

Kristen Mulholland has been with Johnson & Johnson since 2005. Ms. Mulholland has held HR leadership positions in the Company’s corporate services, global functions and the MedTech and Innovative Medicines sectors across commercial and R&D and helped establish the Company’s Innovation Centers. In her most recent role as Head of Human Resources, Global Total Rewards & Enterprise HR Functions at Johnson & Johnson, Ms. Mulholland worked closely with the Board of Directors supporting the Compensation & Benefits Committee and played a key role in the separation of the consumer business to form Kenvue.

“I’m pleased to appoint Kristen to this important role where she will apply her deep business acumen, talent expertise and Credo-based approach to advance J&J’s culture and operating model,” said Mr. Duato. “I’m confident her breadth of experience and strong leadership will ensure Johnson & Johnson’s human capital strategy is poised to deliver the innovative future-ready talent and culture needed to advance healthcare solutions for patients worldwide.”

About Johnson & Johnson

At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at https://www.jnj.com/.

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Booz Allen Hamilton (NYSE:BAH) Misses Q1 Sales Targets, Stock Drops 11%

via StockStory

BAH Cover Image

Government consulting firm Booz Allen Hamilton (NYSE:BAH) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 7.3% year on year to $2.97 billion. The company’s full-year revenue guidance of $12.25 billion at the midpoint came in 4.5% below analysts’ estimates. Its non-GAAP profit of $1.61 per share was in line with analysts’ consensus estimates.

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Booz Allen Hamilton (BAH) Q1 CY2025 Highlights:

  • Revenue: $2.97 billion vs analyst estimates of $3.03 billion (7.3% year-on-year growth, 1.8% miss)
  • Adjusted EPS: $1.61 vs analyst estimates of $1.61 (in line)
  • Adjusted EBITDA: $316 million vs analyst estimates of $331.6 million (10.6% margin, 4.7% miss)
  • Management’s revenue guidance for the upcoming financial year 2026 is $12.25 billion at the midpoint, missing analyst estimates by 4.5% and implying 2.3% growth (vs 12.4% in FY2025)
  • Adjusted EPS guidance for the upcoming financial year 2026 is $6.38 at the midpoint, missing analyst estimates by 7.4%
  • EBITDA guidance for the upcoming financial year 2026 is $1.34 billion at the midpoint, below analyst estimates of $1.43 billion
  • Operating Margin: 9.2%, in line with the same quarter last year
  • Free Cash Flow Margin: 6.5%, up from 4.6% in the same quarter last year
  • Organic Revenue rose 6.2% year on year (13.9% in the same quarter last year)
  • Market Capitalization: $16.35 billion

Company Overview

With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.

Sales Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $11.98 billion in revenue over the past 12 months, Booz Allen Hamilton is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.

As you can see below, Booz Allen Hamilton grew its sales at an impressive 9.9% compounded annual growth rate over the last five years. This is a great starting point for our analysis because it shows Booz Allen Hamilton’s demand was higher than many business services companies.

Booz Allen Hamilton Quarterly Revenue

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Booz Allen Hamilton’s annualized revenue growth of 13.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Booz Allen Hamilton Year-On-Year Revenue Growth

We can dig further into the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Booz Allen Hamilton’s organic revenue averaged 12.9% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results. Booz Allen Hamilton Organic Revenue Growth

This quarter, Booz Allen Hamilton’s revenue grew by 7.3% year on year to $2.97 billion, missing Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 6.9% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is satisfactory given its scale and implies the market sees success for its products and services.

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Operating Margin

Booz Allen Hamilton was profitable over the last five years but held back by its large cost base. Its average operating margin of 8.9% was weak for a business services business.

On the plus side, Booz Allen Hamilton’s operating margin rose by 1.8 percentage points over the last five years, as its sales growth gave it operating leverage.

Booz Allen Hamilton Trailing 12-Month Operating Margin (GAAP)

This quarter, Booz Allen Hamilton generated an operating profit margin of 9.2%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Booz Allen Hamilton’s EPS grew at a spectacular 14.9% compounded annual growth rate over the last five years, higher than its 9.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Booz Allen Hamilton Trailing 12-Month EPS (Non-GAAP)

Diving into Booz Allen Hamilton’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Booz Allen Hamilton’s operating margin was flat this quarter but expanded by 1.8 percentage points over the last five years. On top of that, its share count shrank by 10.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Booz Allen Hamilton Diluted Shares Outstanding

In Q1, Booz Allen Hamilton reported EPS at $1.61, up from $1.33 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Booz Allen Hamilton’s full-year EPS of $6.35 to grow 8.3%.

Key Takeaways from Booz Allen Hamilton’s Q1 Results

We struggled to find many positives in these results. Revenue and EBITDA both missed this quarter. Looking ahead, the company's full-year revenue guidance missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 11% to $114.80 immediately after reporting.

Booz Allen Hamilton underperformed this quarter, but does that create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.