AECOM Technology Corporation (NYSE:ACM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
AECOM Technology Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 11.11% to $0.70 in the quarter versus EPS of $0.63 in the year-earlier quarter.
Revenue: Decreased 1.32% to $2.07 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: AECOM Technology Corporation reported adjusted EPS income of $0.70 per share. By that measure, the company beat the mean analyst estimate of $0.64. It missed the average revenue estimate of $2.1 billion.
Quoting Management: “We continued to execute well against our long-term objectives, including the extension of our competitive advantage through our global footprint and portfolio of offerings, which are aligned well with our clients’ evolving needs as well as industry trends,” said John M. Dionisio, AECOM chairman and chief executive officer. “In a challenging growth environment, we booked $1.9 billion in new wins, which contributed to our $16.8 billion in backlog. We also saw on-going strength in emerging markets — such as Asia, Africa and the Middle East. Despite our strong execution this quarter, further deterioration in our mining business in Australia, and slower conversion of backlog in the Americas, is negatively impacting our topline growth. As a result, we are lowering our full-year fiscal 2013 earnings per share guidance range to $2.30 to $2.40.”
Key Stats (on next page)…
Revenue increased 3.91% from $1.99 billion in the previous quarter. EPS increased 32.08% from $0.53 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.92 to a profit $0.93. For the current year, the average estimate has moved down from a profit of $2.48 to a profit of $2.45 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)