The 10-second takeaway
For the quarter ended Dec. 31 (Q1), AECOM Technology beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank.
Margins dropped across the board.
AECOM Technology booked revenue of $2.03 billion. The seven analysts polled by S&P Capital IQ wanted to see revenue of $1.94 billion. Sales were 4.8% higher than the prior-year quarter's $1.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.42. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.42 for Q1 were 13% lower than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 4.5%, 100 basis points worse than the prior-year quarter. Operating margin was 3.3%, 90 basis points worse than the prior-year quarter. Net margin was 2.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.08 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $8.60 billion. The average EPS estimate is $2.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 573 rating the stock outperform and 16 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give AECOM Technology a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AECOM Technology is outperform, with an average price target of $28.79.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.