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 23.26% to $0.53 in the quarter versus EPS of $0.43 in the year-earlier quarter.
Revenue: Decreased 1.06% to $1.99 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: AECOM Technology Corporation reported adjusted EPS income of $0.53 per share. By that measure, the company beat the mean analyst estimate of $0.51. It missed the average revenue estimate of $2.08 billion.
Quoting Management: “During the quarter, we executed well against our long-term objectives, including continued expansion in emerging markets and an improved mix of higher-margin technical and construction services,” said John M. Dionisio, AECOM chairman and chief executive officer. “We booked $2 billion in new wins, which contributed to our $17.1 billion in backlog. We saw strength in emerging markets — such as civil infrastructure in Asia as well as transportation and construction services in the Middle East — and we continued to drive improvements in our Management Support Services business, which included actions to diversify that operation for sustained growth and profitability. Given these results, we are reaffirming our full-year EPS guidance range of $2.40 to $2.50.”
Key Stats (on next page)…
Revenue decreased 1.37% from $2.02 billion in the previous quarter. EPS increased 47.22% from $0.36 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.75 and has not changed. For the current year, the average estimate is a profit of $2.50, which is the same with that ninety days ago.
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)