URS Corp Earnings Cheat Sheet: Margins Suffer as Costs Rise

URS Corporation (NYSE:URS) reported its results for the third quarter. URS is an international provider of engineering, construction and technical services.

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URS Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $623.1 million ($8.05 per diluted share) in the quarter. URS Corporation had a net income of $70.4 million or 87 cents per share in the year earlier quarter.

Revenue: Rose 5.6% to $2.47 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: URS reported adjusted net income of 98 cents per share. By that measure, the company fell short of mean estimate of 99 cents per share. It fell short of the average revenue estimate of $2.57 billion.

Quoting Management: Commenting on the Company’s financial results, Martin M. Koffel, Chairman and Chief Executive Officer, stated: “We are pleased with our operating performance during the quarter, but disappointed that, given the volatile stock market conditions, we were required to take a non-cash impairment charge under Accounting Standards Codification (ASC) 350-20. Financially and competitively, URS remains strong, and we continue to see positive trends across most of the markets we serve.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 6 cents in the second quarter, by 5 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 1.8 percentage points to 6.9%. The contraction appeared to be driven by increased costs, which rose 7.7% from the year earlier quarter while revenue rose 5.6%.

Revenue has risen the past four quarters. Revenue increased 4.9% to $2.36 billion in the second quarter. The figure rose 5.1% in the first quarter from the year earlier and climbed 12.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $66.8 million in the second quarter, a profit of $62.1 million in the first quarter and $60 million in the fourth of the last fiscal year.

Looking Forward: The average estimate for the fourth quarter is steady at 98 cents a share. The average estimate for the fiscal year is $3.62 per share, down from $3.66 ninety days ago.

Competitors to Watch: Jacobs Engineering Group Inc. (NYSE:JEC), Fluor Corporation (NYSE:FLR), KBR, Inc. (NYSE:KBR), Michael Baker Corporation (AMEX:BKR), Tetra Tech, Inc. (NASDAQ:TTEK), The Shaw Group Inc. (NYSE:SHAW), Tutor Perini Corporation (NYSE:TPC), AECOM Technology Corp. (NYSE:ACM), Quanta Services, Inc. (NYSE:PWR), and Willdan Group, Inc. (NASDAQ:WLDN).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)